During a calendar year audit of Avelis Industries Inc., an established espresso machine wholesaler, the auditing firm discovers that several checks are

During a calendar year audit of Avelis Industries Inc., an established espresso machine wholesaler, the auditing firm discovers that several checks are out of sequence on the subsequent month’s (January) bank statement. After further inquiry, it is discovered that Katie Larello, the company’s president, takes a 2 week break at the end of each year. Before she leaves, she signs a number of checks and leaves them with the controller in the event any payables come due while she is away. In your initial post, answer the following questions:

  1. Discuss the inefficiencies in Avelis’ internal controls.
  2. What role does the auditing firm have in discovering fraud related to this weakness within Avelis’ internal controls?
  3. With regard to the audit plan, what type of response should the auditing team make with this new information?

Share This Post

Email
WhatsApp
Facebook
Twitter
LinkedIn
Pinterest
Reddit

Order a Similar Paper and get 15% Discount on your First Order

Related Questions

Your anYour anYour anYour anYour anYour anYour anYour anYour anYour anYour anYour anYour anYour anYour anYour anYour anYour anYour anYour anYour anYour

Your anYour anYour anYour anYour anYour anYour anYour anYour anYour anYour anYour anYour anYour anYour anYour anYour anYour anYour anYour anYour anYour anYour anYour anYour anYour anYour anYour anYour anYour anYour anYour anYour anYour anYour anYour anYour anYour anYour anYour anYour anYour anYour anYour anYour anYour anYour anYour anYour anYour

Summative assessment There will be one summative assessment which involves a comprehensive analysis of the financial and non-financial performance of an

Summative assessment There will be one summative assessment which involves a comprehensive analysis of the financial and non-financial performance of an international organization (of your choice) and its closest competitor. You are required to select an international organization (company A), identify its closest competitor (company B), and analyse their financial

Financial Statement Fraud Exercise #1 In your Fraud Examination Casebook with Documents textbook, read Case 1: Fraudulent Financial Statements (pp.

Financial Statement Fraud Exercise #1 In your Fraud Examination Casebook with Documents textbook, read Case 1: Fraudulent Financial Statements (pp. 5-19). Perform Exercise 1 – Fraudulent Financial Statements (Larsen Convenience Store), Items 1-5 inclusive, on pages 19-20 of the Casebook text. Submit your completed Excel file (Financial Statement Fraud Exercise #1 Template) as part of

Financial Statement Fraud Exercise #1 In your Fraud Examination Casebook with Documents textbook, read Case 1: Fraudulent Financial Statements (pp.

Financial Statement Fraud Exercise #1 In your Fraud Examination Casebook with Documents textbook, read Case 1: Fraudulent Financial Statements (pp. 5-19). Perform Exercise 1 – Fraudulent Financial Statements (Larsen Convenience Store), Items 1-5 inclusive, on pages 19-20 of the Casebook text. Submit your completed Excel file (Financial Statement Fraud Exercise #1 Template) as part of

The following cost data relate to the manufacturing activities of ABC Company during the just completed year: Manufacturing overhead costs incurred:

The following cost data relate to the manufacturing activities of ABC Company during the just completed year: Manufacturing overhead costs incurred: Indirect materials$16,900Indirect labor 149 The following cost data relate to the manufacturing activities of ABC Company during the just completed year:      Manufacturing overhead costs incurred:  Indirect materials$16,900Indirect labor 149,000Property taxes, factory 9,900Utilities,