MILLORA, ANGELO JAMES W.

BSAC – AAI
MWF 3-4 9-21-20
1.A

 1st Audit Objective: This objective focuses more on if whether the product which was purchased, were already
shipped to customers. This would more or less be Vouching as there is identification of occurrence of the event
or transaction.
 2nd Audit Objective: This object focuses more on whether there are records aligned with the shipment delivered
to customers. This would be Tracking as there is identification of records to be matched with an occurrence or a
transaction and would most likely focus on the Financial Statements.

1.B

 1st and 2nd Audit Objectives: One would perform Inspection on this objective, relating to whether an event
actually occurred could be confirmed through confirmation by the financial statements. An Auditor may run
through the financial statements of the company, and monitor the inventory movement during such occurrence,
and may also monitor the stock on the purchased item to verify whether there was a decrease or none.

1.C

 When conducting an audit, there are set plans and procedures in an audit plan which are to be followed, in any
other procedure or task, this also applies. Attaining sufficient and crucial evidence with the proper processes
may dictate the outcome of any process of audit. However, there would also be cases in which other evidences
would pop up which are not necessarily relevant to the current case, in such cases, it is imperative that the
Auditor should obtain evidence which surely or probably matches the transactions for the sake of integrity and
verification of evidence. The importance lies in the timeliness and accuracy of results for both the auditor, who
has to create the report or opinion, and the client who asked for the audit in the first place.

2.1

 An appropriate audit process for this case is Observation, since it is used to mainly gain an understanding of and
gain evidence of client processes and client business processes. This is to confirm whether the client’s claim of
processes is true and those that which reflect on the objective of the audit.

2.2

 A – Inquiry – To know who authorized the purchase through asking questions and backtracking.
 B – Inquiry – To confirm whether responsibilities toward the computers were justifiably distributed and who set
such responsibilities.
 C – Inquiry – To confirm whether cyber securities are and security in general are well guarded.
 D – Inquiry – To confirm whether there is compliance with any laws or regulations in the acquisition and usage
of computers and its databases.
 E – Inspection/Observation – To confirm that the computers were not purchased at more or less of the historical
cost.
 F – Inspection – To validate whether each computer unit purchase was recorded in the books of the client.
 G – Recalculation – To confirm and compare the results of audit calculations and books of the client.
 H – Recalculation – To validate the justifiability of useful life calculations made by the company.
 I – Recalculation – To determine the correctness and appropriateness of depreciation expenses on the units.

3. In any well formulated opinion and result, there are grounds for facts and evidences which such is based upon. The IA
working papers serve as the foundation and grounds for the results. Had the papers been poorly prepared, it may not
only affect the results and defense of such claims by the Auditor, but it may also affect the overall authenticity of and
occurrence and the credibility of the report. There is also a lack of verifiability, comparability and validity in the work of
the internal auditor as there is less evidence that can be used, of course unless there is sufficient and strong appropriate
evidence at hand, which does not happen often. Poorly prepared documents may as well have an effect on the decision
making of the users of the company and that they could make rash decisions on different matters of the company.