John and Elaine, two audit managers assigned to the audit of Hodges Enterprises, Inc. are discussing how best to document the internal controls the client has in place. John and Elaine are attempting to appropriately document internal controls to assist with the audit. Which of the following choices represent appropriate methods to document internal control? (Select all that apply.) John advises that he might record in written form the client's purchases-payables process from start to finish. Elaine advises John that to help her understanding of the client's controls over cash receipts and disbursements; she will request management prepare a document fully detailing all procedures related to this area. John advises Elaine that in order to document his understanding of IT general controls, he will ask the IT department to formulate and complete a questionnaire. Elaine advises John that she is a more 'visual' person, and plans to prepare a flowchart to help her understand the client's revenue and receivables cycle.

John and Elaine, two audit managers assigned to the audit of Hodges Enterprises, Inc. are discussing how best to document the internal controls the client has in place. John and Elaine are attempting to appropriately document internal controls to assist with the audit. Which of the following choices represent appropriate methods to document internal control? (Select all that apply.) John advises that he might record in written form the client's purchases-payables process from start to finish. Elaine advises John that to help her understanding of the client's controls over cash receipts and disbursements; she will request management prepare a document fully detailing all procedures related to this area. John advises Elaine that in order to document his understanding of IT general controls, he will ask the IT department to formulate and complete a questionnaire. Elaine advises John that she is a more 'visual' person, and plans to prepare a flowchart to help her understand the client's revenue and receivables cycle.

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter11: Auditing Inventory, Goods And Services, And Accounts Payable: The Acquisition And Payment Cycle

Section: Chapter Questions

Problem 35RQSC

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