You Are Conducting the Audit of a Medium-Sized Company That

question 72

Essay

You are conducting the audit of a medium-sized company that has a chief accountant and three employees.Segregation of duties is excellent,with jobs allocated to provide maximum levels of controls.Segregation is supported by accounting software with user identification and passwords that limit functions to the appropriate jobs.
Required:
A)What type of audit approach would you recommend? Why?
B)How would your answer change if the accounting department was organized on a job-sharing basis so that all employees did some of every task to keep the work more interesting? Why?

• A)What type of audit approach would you recommend? Why?
• B)How would your answer change if the accounting department was organized on a job-sharing basis so that all employees did some of every task to keep the work more interesting? Why?

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Definitions:

Research Methods

The strategies, techniques, and procedures used in the investigation of phenomena, acquisition of new knowledge, or correction and integration of previous knowledge.

Experimental

Pertaining to or based on a methodical plan or procedure to establish cause and effect by testing hypotheses and controlling variables.

Correlational

Pertaining to a statistical relationship between two or more variables, indicating how one may predict the other without implying causation.

Overt Behavior

Actions or responses that are observable and measurable by others, as opposed to thoughts or feelings which are internal and subjective.