Earth Wear Online-Cases PDF

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2/1/2020

EarthWear Online-Cases

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Course-wide Content ACL Assignments EarthWear Online-Ca... EarthWear Investor Inf... Willis & Adams Interna... Professional Judgement... Auditing Weblinks

EarthWear Online-Cases (See related pages)

Chapter 1 – EarthWear Clothiers Introduction

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In this activity you will become further acquainted with EarthWear Clothiers and their auditors Willis & Adams International. This introductory activity also provides an opportunity to become familiar with the structure and format of the EarthWear cases.

Chapter 3 – Client Acceptance

Willis & Adams staff partially completed the client acceptance/continuance forms for EarthWear, but there are a few more considerations that need to be made. After completing the remaining assessments using the background information provided, you will evaluate the continuance decision for EarthWear as an audit client.

Chapter 3 – Audit Planning Memo

Willis & Adams is beginning to prepare the audit planning memo for the upcoming audit of EarthWear. You have been asked to research a few aspects of EarthWear’s business that will aid in the planning process. You will also evaluate the results of some of the preliminary analytical procedures that were calculated to aid in assessing risk.

EarthWear Introduction (78.0K)

Willis & Adams International EarthWear Unaudited 2014 Financial Statements (51.0K)

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Client Acceptance (140.0K)

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Using Willis & Adams’ guidelines and EarthWear’s unaudited financial statements, you will determine overall materiality and performance materiality.

Overall Materiality and Performance Materiality (36.0K)

Chapter 4 – Understanding the Entity and Its Environment

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Exhibit 4-3 illustrated how auditors document their understanding of the client and its environment using a questionnaire. Willis & Adams staff partially completed the questionnaire for the upcoming audit of EarthWear, and your task is to complete the remaining questions.

Understanding the Entity and Its Environment (78.0K)

Chapter 5 – Preliminary Analytical Procedures

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Chapter 5 – Evaluation of Inventory Audit Evidence

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Client Background (31.0K)

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Audit Planning Memo (92.0K)

Chapter 3 – Overall Materiality and Performance Materiality Misstatement

Willis & Adams’ staff prepared detailed ratio analysis, trends, and common size balance sheet and income statements based on EarthWear’s unaudited financial statements. The procedures you perform will analyse the results of the computations and assess the overall financial condition of EarthWear.

EarthWear Clothiers Investor Information

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Materiality Guidelines (40.0K)

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Client Background (31.0K)

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Preliminary_Analytical_Procedures (158.0K)

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EarthWear Online-Cases Willis & Adams staff observed inventory counts at two warehouse locations for Earthwear. Your task is to evaluate the inventory count tags and inventory status sheet for accuracy, completeness, and existence.

Inventory Testing (85.0K)

Physical Inventory Count Description (26.0K)

Inventory Status Report (75.0K) Inventory Tags Germany (65.0K) Inventory Tags Japan (57.0K)

Chapter 6 – Control Environment and Internal Control Documentation

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Exhibit 6-1 illustrated how auditors document Control Environment and Internal Control their understanding of the client’s control Documentation (151.0K) environment. The chapter also explains that a questionnaire can be used to document the assessment of control risk. Willis & Adams staff partially completed questionnaires to document their understanding of the client’s control environment and their assessment of control risk for the upcoming audit of EarthWear. Your task is to complete the remaining questions on these questionnaires.

Chapter 6 – Tests of Controls (Part A)

Willis & Adams staff partially completed their control testing on a random sample of voucher packets. Your task is to complete the testing on the remaining four voucher packets and then judgmentally evaluate the results of the tests of controls (Part B of this case is outlined in Chapter 8 and includes a statistical approach to quantifying and evaluating the results of the test of controls).

Chapter 8 – Tests of Controls (Part B)

In Part A you completed controls testing on the sample of voucher packets selected by Willis & Adams staff and judgmentally evaluated the results (see Part A mini case description in Chapter 6). Your task is to statistically quantify and evaluate the results of tests of controls from Part A using the methods outlined in the chapter.

Chapter 10 – Accounts Receivable Tests of Details

As part of the accounts receivable tests of details Willis & Adams staff requested balance confirmations from a random sample of EarthWear customers. Four of the confirmations indicated potential misstatements and required further review by the client. Your task is to review the results of these four confirmations and then evaluate any errors you detect.

Chapter 16 – Audit of Cash

Willis & Adams staff partially completed the audit program for the audit of cash for EarthWear's primary general cash account. Your task is to complete the remaining audit program procedures by evaluating documents such as bank confirmations and cutoff bank statements. You will document your work utilizing the appropriate tick marks as outlined in the work papers. You will also identify the assertions tested by each procedure and describe any errors you detected or potential errors that would be detected by performing the procedure.

Chapter 19 – Ethics

Review ethical challenges facing a Willis &

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Corporate Governance (29.0K) Internal Control Environment (29.0K)

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Tests of Controls (Part A) (60.0K) Voucher Packet 164210 (871.0K) Voucher Packet 185423 (538.0K) Voucher Packet 190214 (456.0K) Voucher Packet 195840 (433.0K)

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Tests of Controls (Part B) (46.0K)

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Accounts Receivable Tests of Details (67.0K) AR Confirmations (806.0K)

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Audit of Cash (186.0K)

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Ethics (58.0K)

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Ethics Background Document (34.0K)

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EarthWear Online-Cases Adams staff auditor and indicate what you would do if faced with a similar situation.

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