Auditing and Assurance Services 1st Edition by Iris Stuart

Exercise 2

Audit procedures for fraud detection in the revenue process. You are planning the audit for Sole Comfort, a high-end shoe store selling imported shoes to men and women.
a. Describe how you will use evidence to evaluate the accounts associated with the revenue process on the financial statements.
b. Use the assertions of existence, completeness, and valuation to describe how you would design audit procedures to determine whether the assertions were true for the revenue process.
c. Describe two types of fraud that might occur in a shoe store. Explain how you would design audit procedures to detect the fraud.
d. How do you know when to stop gathering evidence
e. How do you determine whether the evidence you have gathered supports your decision