AUDITING AND ASSURANCE II

PROBLEM BASE LEARNING (PBL)

TASK IV

Lecture :

Drs. Sudarmadji Herry Sutrisno, MM.

Created by :

Diva Zhafirah Gunawan (023001800008)

Indah Olivia (023001800050)

Aurora Azzahra (023001801154)

JURUSAN AKUNTANSI

FAKULTAS EKONOMI DAN BISNIS

UNIVERSITAS TRISAKTI

JAKARTA
Book B – Chapter 8

a. Case 8.1.
Consider the following statement and explain why they may be true or false:
1. ICQs are questionnaires used to record the system in use.
 True, because ICQ can help auditors meet audit objectives, as we know it is important
for auditors to carry out examinations related to internal control in the company being
audited by them. The most effective thing that must be done by auditors to check the
company's internal performance is to use an internal control questionnaire or internal
control questionnaire (ICQ).

2. ICQs are questionnaires used to evaluate the system in use.

 False, Internal Control Questionnaires (ICQs) are used to check whether a particular
control exists and not to detect or prevent, correcting and evaluate a material
misstatement (or simply misstatement) at an assertion level. But to evaluate the system
it would be used in ICEQs.

3. ICEQs are questionnaires used to record the system in use.

 False, Internal Control Evaluation Questionnaires (ICEQs) are used to check whether
a certain existing control is operating effectively or not to detect or prevent and correct
a material misstatement (or simply misstatement) at an assertion level. In simple
words ICEQs are used to appraise the operating effectiveness of the internal control
system. Record the system would be used in ICQc

4. The basic requirement of an accounting system is that it means meets the needs of the
business for which it is designed.
 True, because because the purpose of an accounting system is to help and meet
business needs, if the system does not meet business needs then the system becomes
useless for the company and will only waste costs for useless things

5. In small organization is impossible to have a goods system of internal control.

 False, because in my opinion, if the business is not too big it will be easier to monitor
the internal control, but actually small businesses do not really need an internal control
system because with only one supervisor they can control business activities.
 6. In modern systems, a data flow diagram is more used that document flowchart.
 False, because Document Flowchart shows the working process and procedure from
the beginning until the ending clearer than data flow diagram.

b. Case 8.2.
Assume that Am Paterson, an established customer, has telephoned asking that she be
supplied with three recently published books. She has been passed to a sales clerk who desk
with her order. Suggest control that should be in force before her order is accepted.
Answer :
A major risk is that the customer will receive goods or services and not pay for them. Other
risks include despatch of goods other than those requested, despatches to wrong addresses,
despatch at prices or terms other than those agreed, or promising delivery when goods are not
available, thus threatening good relations. No doubt there are other risks, but these are enough
to be going on with.
These risks can be reduced if the entity has systems for identifying the customer, for checking
the order, for checking credit worthiness, for determining terms for that kind of customer and
for checking inventory availability. If Am Paterson is an existing customer, he may identify
himself by giving details known only to himself, such as mother’s maiden name, or
identification word (banks frequently use identification systems like this). For existing
customers, the system might allow comparison by the clerk of current balance outstanding as
updated by current transaction and credit limit. New customers might be asked for credit card
details that will establish that credit is available, or may be asked to pay before the goods are
delivered. The information system should allow the clerk to check on availability of inventory
and delivery times. The other risks mentioned probably all result from incorrect recording. To
make such errors less likely, the screen format for sales orders should be designed for ease of
use and the system should not allow the order to proceed unless all fields of the form on the
screen are completed. The clerk should also be trained to read the details of the order back to
the customer. A copy of the order might be emailed or sent by post to the customer.

c. Case 8.3.
Assuming that the order is accepted and that the books will be supplied or credit, explain what
records will be affected by the transaction and the information / audit trail detail that should be
recorded.