CIA 1195 1.20(Topic:D. Determine Engagement Procedures and Prepare Work Program)
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Qs. The internal auditor for a diversified organization is performing a preliminary analytical review of the home building division. The division accounts for approximately 15% of the organization’s revenues and profits. It operates in the Southwest region of the country and has been growing rapidly. New management took over the division during the early part of 2009 and has been very aggressive in pushing market share and growth. Management is considering expanding operations to new regions because of (1) demonstrated growth and profitability potential; and (2) a potential slowing of growth in the Southwest region. The division views itself as the efficient home builder in the region. The following data have been compiled for your review. Which of the following audit procedures should be performed to verify the accrued revenue recorded for the jobs in progress account at year-end 2010
Can you explain/elaborate more on the below option:-
II. Perform detailed tests of the job cost build-up for the jobs in progress to determine that all costs have been properly assigned.
what is cost doing in this analysis?
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