Linking Internal Control Deficiencies to Audit Procedures

question 46

Essay

Linking internal control deficiencies to audit procedures
After assessing internal control weakness the auditor develops audit procedures to explicitly test for the existence of the types of fraud or misstatement that could occur because of the weakness.In the linkage process from control deficiencies to audit procedures,what are the four questions involved in linking changes to the audit program?

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Definitions:

Robinson-Patman Act

A federal law that prohibits charging customers different prices if it is injurious to competition in the market.

Additional Shift

Implementing an extra work period within a 24-hour timeframe to increase production capacity.

Selling Price

The amount of money for which a product or service is sold to the customer.

Fixed Costs

Costs that do not change with the level of production or sales volume, such as rent or salaries.