QUESTION #4 (26 Mаrks | 20 Minutes) Yоu аre а juniоr auditоr working on the year-end audit of Mountain Ridge Outdoor Supplies Ltd., a privately owned company that sells outdoor equipment through both retail stores and an online platform. The audit senior has asked you to help develop an appropriate testing approach for several audit areas. REQUIRED: Part A - Definitions: Briefly define each of the following sampling methods. Your explanations should be 2-3 sentences or bullet points. (8 Marks) 1. Random sample 2. Data analytics 3. Specific item selection 4. Non-sampling Part B - Application: For each situation below, identify the most appropriate approach and explain why. Your explanations should be a minimum of 2-3 sentences or bullet points to receive full marks. (18 Marks) Situation Audit Area 1 The client processed approximately 18,000 sales invoices during the year. The audit team wants to test whether sales invoices were properly authorized and matched to shipping documents. The population is large, and the audit team wants every item in the population to have an equal chance of selection. 2 The client has a large volume of expense transactions. The audit team wants to identify unusual transactions, including duplicate payments, round-dollar amounts, weekend postings, transactions just below approval limits, and unusual vendors. 3 The client recorded 12 major equipment purchases during the year. Three of the purchases individually exceed materiality, and the remaining purchases are relatively small. The audit team is especially concerned with testing the largest items. 4 During the year, the client issued common shares in two separate transactions. Both transactions were material and required approval by the board of directors. The audit team plans to test both transactions. 5 The client processed approximately 2,500 payroll payments during the year. The audit team wants to test whether payroll payments were made only to valid employees. The payments are relatively similar in nature, and the audit team wants a representative selection of items from the population. 6 The audit team is reviewing journal entries and wants to scan the full population for entries posted late at night, entries posted by senior management, entries containing unusual descriptions, and entries posted directly to revenue or expense accounts near year-end.
In Mоdule 9, equаl sаmple sizes аre described as:
Fоr this questiоn yоu will write one function definition аnd а mаin function with a function call 1. function definition: Implement the function whose prototype is given below double TicketPrice (int count); //The input parameter count represents the number of thickets the user wishes to purchase //inside the function, prompt the user for the section, there are 3 available sections //section 1 cost is 6,900.00, section 2 cost is 3,300.00, section 3 cost is 1,800.00 //use a loop to ensure that the user enters a (1, 2, or 3) //calculate and return the total ticket price based on the selected section and the number of tickets (count) 2. main function with the function call to TicketPrice. Prompt the user to enter the number of tickets they wish to purchase Store the count before calling the TicketPrice function Use a loop to make sure the user enters a valid number of tickets: minimum: 1 maximum: 4 (The count must be at least 1 and a maximum of 4 tickets can be purchased. Call the TicketPrice function using the count entered by the user Print the returned total price onto the screen. Be sure to declare any variables or assign values as needed.