AC 410 All Assignments

18–29. The CPA firm of Carson & Boggs LLP is performing an internal
control audit in accordance with PCAOB Standard No. 5.The partner in
charge of the engagement has asked you to explain the process of
determining which controls to test. Describe the process, presenting
each of the links in this process and a short summary of how the
auditors approach each of them.
18–34. Simulation
Bill Jensen, a staff member of Zhan & Co., CPAs, has given you the
following list of what he refers to as “internal control deficiencies” for
the Zabling Co. audit and has asked you to review each point and make
certain that you agree that each is an internal control deficiency. For
each of the following items, reply A (Agree) or D (Disagree) indicating
whether the item represents an internal control deficiency.
18–35. Match the following definitions (or partial definitions) to the
appropriate term. Each term may be used once or not at all.
18–36. Your working papers for an integrated audit being performed
under PCAOB Standard No. 5 include the narrative description below of
the cash receipts and billing portions of internal control of Slingsdale
Building Supplies, Inc. Slingsdale is a single-store retailer that sells a
variety of tools, garden supplies, lumber, small appliances, and
electrical fixtures to the public, although about half of Slingsdale’s sales
are to construction contractors on account. Slingsdale employs 12
salaried sales associates, a credit manager, three full-time clerical
workers, and several part-time cash register clerks and assistant
bookkeepers. The full-time clerical workers perform such tasks as cash
receipts, billing, and accounting and are adequately bonded. They are