ACC/546 Audit Program Design Part III

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Running head:AUDIT PROGRAM DESIGN PART III1Audit Program Design Part IIICraig L. GranvilleACC/546AuditingTodd LaPoreNovember 18,2013In the provided audit program for Apollo Shoes, various audit procedures are outlined for boththe inventory and warehousing cycle, aswell as the cash cycle. Discuss the key differencesbetween the tests of controls, substantive tests of transactions, and analytical procedures inrelation to these two cycles. How do these audit procedures help in identifying risks, ensuringcompliance with GAAP, and providing assurance to stakeholders? Additionally, evaluate theimportance of addressing internal control deficiencies and their impact on the effectiveness ofthe audit process.Word Count Requirement:600-800 words

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AUDIT PROGRAM DESIGN PART III2IntroductionIn order to conduct a substantial audit of Apollo Shoes the auditor must obtain asufficientappreciativeof the entity’s environment, including the internal control. Theunderstanding of its environmentwillhelpmostauditorsinrangeof ways throughout the audit,including establishing materiality, considering appropriateness, and designing audit proceduresthat can facilitate the growth of Apollo Shoes. Before the auditor can begin the process ofconducting the audit of the inventory and warehousing cash cycles, the auditor must prepare theaudit plan and program for Apollo Shoes.Developing the audit strategy and plan aids the auditor in determining the necessaryresources to perform theassign task at hand.He or she will thendevelop a plan in mind that willbe at acceptable level when he or shereducesaudit risksfor the inventory and warehousing cashcycle.Theauditor should have a plan that should have the following things in it whichinclude aprocedure for risk management, along withdescription of natureandtiming.The audit plan andprogram significantly affects the types of further audit procedureswill be conduct by theauditorinaccordance withthe USgenerally accepted accounting principles(GAAP)that thefinancialstatementswere statedfair.The auditor shouldtake into account the risk that they are taking inrelation toa clientsaccount balances, certaintransactionsthat were made, and disclosures of theoverall level of theclient’sfinancial statements.These further audit proceduresthat the auditor will used in auditing Apollo Shoes, Inc.,will be:1.test of controls2.substantive tests of transactions3.analytical procedures with the evidence collected from these procedures forming part

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