You Have Been Hired by a Local Grocery Store to Evaluate

question 90

Essay

You have been hired by a local grocery store to evaluate the internal controls of the store.a.Identify the assets of value in the store.Describe the internal controls that are likely to be used by management to safeguard the assets of the store.b.Describe how you would document and test internal controls in this store.c.Using the audit risk model,illustrate how your reliance on internal controls affects the substantive testwork done for the audit of the grocery store.

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Definitions:

Charity Watchdogs

Organizations or groups that monitor, evaluate, and report on the transparency, accountability, and effectiveness of charities and non-profit organizations.

Private Organizations

Organizations operated and funded by private individuals or groups, without governmental control, and may pursue profit or nonprofit activities.

Nonprofit Performance

The assessment of how effectively nonprofit organizations achieve their goals and deliver on their mission.

Fund-raising

The process of gathering voluntary contributions of money or other resources by requesting donations from individuals, businesses, charitable foundations, or governmental agencies.