You are involved in the audit of accounts receivable, which represent a significant portionof the assets of a large retail corporation
Your audit plan requires the use of the computer,but you encounter the following reactions:
For each situation, state how the auditor should proceed with the accounts receivable audit.
The computer operations manager says the company's computer is running at full capacity for the foreseeable future and the auditor will not be able to use the system for audit tests.
• The auditor should not accept this explanation and should arrange with company executives for access to the computer system.
• The auditor should recommend that the procedures manual spell out computer use and access for audits.
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Walter opens a motorcycle repair shop where he will not only repair motorcycles, but will also offer custom paint jobs, accessories and some t-shirts. When Walter opened his business, his primary objective was to ________.
A. Improve Personal Skills B. Help the motorcycle community C. make a profit
Considering the "crisis do's" mentioned in Chapter 17, which of the following most accurately describes the recommended overall approach?
A) stay connected B) use a sense of urgency C) stay flexible D) be prepared