Substantive Procedures Asset Irregularities ACC 556

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Substantive Procedures Asset Irregularities ACC 556 (3 Pages 688 Words)

Introduction

This next phase of the auditing process for Apollo Shoes Inc. (Apollo) is the designing of an audit program, which will detail substantive procedures for detecting irregularities in the accounts receivable, inventory, and fixed assets audit cycles. Fixed Assets Apollos irregularities in fixed assets, has caused concern for substantive procedures to be designed to audit this cycle. The most common schemes where fixed assets are subject to manipulation include booking fictitious assets; misrepresenting asset valuation; and improperly capitalizing inventory and startup costs. One of the easiest methods of the misrepresentation of fixed assets is booking fictitious Assets. Booking...

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