Statements of accounts receivable balances are mailed to customers each month by the accounts receivable accounting department . Customers ’ reports of disputes or differences shall be handled by customer service .
Cash Disbursements
All disbursements are made by check , signed by the controller .
Artifact Two : Sample Audit Program
Your second portfolio artifact will be the professional audit program based on PCAOB audit standards that you create for Newham , an influential client at S . N . H . U , LLC . Make sure to incorporate the feedback you receive from your instructor while developing this audit program . The following sections should be included :
Business Risk Analysis : Identifying risk in an organization and the environment in which it operates is the first step in approaching a potential audit and designing an effective audit program . To analyze business risk , you must :
Gain an understanding of Newham o Investigate the industry in which Newham operates o Analyze and assess the risk , including fraud , involved in the company and industry o Identify the relevant PCAOB audit standards and address their relevance to the Newham audit risk assessment
Sample Audit Program : An audit program involves compiling a list ( program ) of procedures for the auditors to perform in order to obtain evidence and reasonable assurance that internal controls are operating properly and thus producing accurate financial statements . To compile a sample audit program , you have been provided with tests of control in revenue and inventory