Ismah shabrina 361139

D. The results of Test of control and substantive test of transactions

indicate the potential for significant classification misstatements. As
mentioned in the second part of this case in chapter 18, invoices were
not initialed as being internally verified. Three actual misclassifications
existed. The controller explained that he often did not review codings
because of the competence of the accounting clerk doing the coding
and was surprised at the misakes
This indicating potential misstatement and misclassification in addition,
with the analytical procedures result in conclusion 6 analytical
procedure shows that repairs, maintenance, and small tools expenses
have increased materially, both in absolute terms and as a percentage
of sales. Two other expenses have also materially increased, and one
has materially decreased. This conclusion is indicating that there will be
more extensive account analysis for repairs and maintenance, small
tools expense needed. Also the other accounts where significant
changes happened from prior years.