ACC2901 THE ESSENTIALS OF AN AUDITOR

TRIMESTER 1, AY 2022/23
INDIVIDUAL ASSIGNMENT 2

Name of Student:
Student ID:
This is an individual assignment with the assumption that you are a new audit associate of Putnam
and Jacobs LLP. The audit client is Simply Soups Inc. and the engagement manager has given you
the responsibility of confirming the cash balances of Simply Soups Inc.’s bank accounts using
electronic confirmations.
Prepare the following to be reviewed by your audit manager:
Task 1. Confirmation Testing Workpaper and Memo
Task 2. Summary Report

Total marks: 15

Submission deadline: Week 4, 25 Sept, 2359 hours

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 Task 1
Confirmation Testing Workpaper and Memo (Appendix B) - The Confirmation Testing Workpaper is
where you, as a member of the audit team, are required to sufficiently document the evidence that
was gathered and evaluated while completing the audit procedures. In completing the workpaper,
consider the appropriateness and persuasiveness of the evidence gathered by referring to excerpts
from the professional standards included in the Support Materials, which can be downloaded from
learn.confirmation.com. Overall, your final workpaper and memo should demonstrate an
understanding of the key procedures performed and the applicable professional standards.

Appendix B
Confirmation Testing Workpaper and Summary Prepared
By:
Date:
Bank Reconciled A Confirmed Bank B Initial Action Required Second Issues Noted &
Account Bank Balance as Balance as of Confirmation Confirmation Follow-up actions
of 12/31/19 12/31/19 (Per required
(Per Client) Bank)
Fifth US$508,219.33 US$508,219.33 Comments per Reconfirm and
Federal bank: consider the
“Information is impact of the
furnished as a disclaimer
matter of issued by the
courtesy without bank.
a duty to do so
and without
responsibility,
liability, or
warrant,
expressed or
implied.”

Tick mark Legend:

A Balances were traced from Bank Reconciliation Testing Summary.

B Positive confirmations were used to confirm the cash balances of all six accounts.

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Task 2 (15 marks)
For this task, you need to write overall summary for your manager regarding the confirmation testing
(about 500-700 Words).

Your summary should address the following issues:

• The purpose for sending out positive confirmations;

• The reasons for using a third-party intermediary like learn.confirmation.com;

• The risks involved in using a third-party intermediary;

• The steps taken to gain comfort over such risks; and

• Whether the overall work performed provides the basis to reach a conclusion with respect to the
relevant financial statement assertions tested for the cash balance

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