The Peach Blossom Cologne Company Cd-Rom: What's Inside?

The Peach Blossom Cologne Company CD-ROM is a supplementary tool for students to use alongside the textbook, which is authored by Jack W. Paul, a professor of Accounting at Lehigh University. The CD contains working paper templates that enable students to complete their working papers electronically. The CD also includes optional audit programs that students can use as a starting point for developing their own audit programs. The textbook and CD package is designed to help students learn about the audit of internal control over financial reporting and simulate the planning phase of a real audit.

Exercises dealing with the audit of internal control over financial reporting

The fourth edition of the Peach Blossom Cologne Company Audit Case contains exercises dealing with the audit of internal control over financial reporting. These exercises are optional and simulate the planning phase of a real audit. They include:

• Preparation of an engagement letter
• Completing a time budget
• Conducting analytical procedures

In these exercises, students are required to provide an analysis of risks and a discussion of accounts that may present potential problems. They are also provided with working paper templates on a CD, enabling them to complete some or all of the working papers electronically.

AS 2201: An Audit of Internal Control Over Financial Reporting

This auditing standard outlines the requirements and directions for auditors when engaged to perform an audit of a company's internal control over financial reporting. It covers areas such as planning the audit, using a top-down approach, testing controls, and evaluating identified deficiencies. The standard also provides guidance on reporting on internal control and obtaining written representations from management.

Auditing Standard No. 2 - An Audit of Internal Control Over Financial Reporting

This proposed rule by the Public Company Accounting Oversight Board (PCAOB) establishes requirements and directions for auditors engaged to audit both a company's financial statements and management's assessment of internal control over financial reporting. It covers areas such as the auditor's objective, definitions, framework used by management, inherent limitations, and materiality considerations. It also provides guidance on performing the audit, using the work of others, and forming an opinion on the effectiveness of internal control.

Simulating the planning phase of a real audit

The Peach Blossom Cologne Company Audit Case is a book by Jack W. Paul, a professor of Accounting at Lehigh University, accompanied by a CD-ROM. The fourth edition of the book includes optional exercises that simulate the planning phase of a real audit.

Instructors can provide students with a CD containing audit programs, which they can use as a starting point to develop their own audit programs. The CD-ROM also contains working paper templates, enabling students to complete some or all of the working papers electronically.

The optional exercises in the book include preparation of an engagement letter, completing a time budget, and conducting analytical procedures. Students are required to analyze potential problems and provide a discussion of accounts that may present issues.

The internal control flowcharting exercises are based on the client's computer system. Additionally, two statistical sampling exercises are included: an attributes sampling application and a variables sampling exercise using dollar-unit (PPS) sampling.

Overall, the Peach Blossom Cologne Company Audit Case provides a comprehensive and practical learning experience for students in auditing and accounting.

Analytical procedures and their potential problems

The Peach Blossom Cologne Company Audit Case, authored by Jack W. Paul, is a highly successful computerized audit case designed to teach students about auditing procedures and internal control over financial reporting. The case is available in multiple editions, with the fourth edition being the most recent.

The fourth edition includes exercises that simulate the planning phase of a real audit, such as preparing an engagement letter, completing a time budget, and conducting analytical procedures. These analytical procedures are a critical aspect of the audit process, as they help identify potential problems and risks associated with the financial statements of the company being audited.

One of the potential problems that students may uncover through these analytical procedures is the risk of material misstatement in the financial statements. This could include errors or intentional misrepresentations of the company's financial position, affecting critical areas such as revenue recognition, asset valuation, or expense recognition. Students are required to analyze these risks and discuss the accounts that may be susceptible to such misstatements.

Another potential problem that may be identified is the lack of adequate internal controls over financial reporting. For instance, the case may present scenarios where the company's internal control system does not adequately safeguard assets, ensure accurate financial reporting, or promote operational efficiency. Students are then tasked with evaluating these controls and making recommendations for improvements to mitigate the identified risks.

Furthermore, the analytical procedures may also uncover potential problems related to compliance with generally accepted accounting principles (GAAP) or industry-specific regulations. Students must be able to identify any deviations from GAAP and assess their impact on the financial statements. This includes evaluating the company's accounting policies, estimates, and judgments to ensure they are reasonable and consistent with industry practices.

In conclusion, the analytical procedures included in the Peach Blossom Cologne Company Audit Case provide students with a practical understanding of the audit process and potential problems that may arise. By analyzing risks, discussing accounts with potential issues, and evaluating internal controls, students gain valuable experience in identifying and addressing challenges commonly encountered in auditing.

Internal control flowcharting exercises based on the client's computer system

The Peach Blossom Cologne Company Audit Case is a book by Jack W. Paul, a professor of Accounting at Lehigh University. The fourth edition of the book includes optional internal control flowcharting exercises based on the client's computer system. These exercises are designed to simulate the planning phase of a real audit.

The internal control flowcharting exercises in the Peach Blossom Cologne Company Audit Case are optional for students. These exercises provide a practical and hands-on approach to understanding the audit process. By basing the exercises on the client's computer system, students can apply the concepts in a realistic and relevant context.

The client's computer system serves as the foundation for the flowcharting exercises. Students are given access to the client's computer system, including relevant software and data. This allows them to navigate the system, identify key processes and controls, and create flowcharts that illustrate the flow of data and information within the system.

The exercises typically involve creating flowcharts that depict the client's computer system, including data input, processing, and output. Students are tasked with analysing the system's internal controls, identifying potential risks and weaknesses, and suggesting improvements to strengthen the overall control environment.

Instructors can provide additional resources, such as audit programs, to support these exercises. These resources serve as a starting point, allowing students to develop their own audit programs tailored to the specific client and their computer system. The exercises encourage critical thinking, problem-solving, and a comprehensive understanding of internal control principles.

By completing the internal control flowcharting exercises, students gain valuable experience in conducting audits within a computerised environment. They learn to navigate complex systems, identify potential risks, and propose effective solutions. These skills are highly transferable and applicable to a wide range of real-world audit scenarios.

Statistical sampling exercises

The Peach Blossom Cologne Company CD-ROM contains working paper templates that enable students to complete some or all of the working papers electronically. This is part of the fourth edition of the Peach Blossom Cologne Company Audit Case, which includes exercises dealing with the audit of internal control over financial reporting.

The CD-ROM also includes two statistical sampling exercises: an attributes sampling application and a variables sampling exercise using dollar-unit (PPS) sampling. These exercises are designed to simulate the planning phase of a real audit, including the preparation of an engagement letter, completing a time budget, and conducting analytical procedures.

In addition, students are provided with optional internal control flowcharting exercises based on the client's computer system. They are also given the option to prepare an engagement letter, complete a time budget, and conduct analytical procedures to identify potential problems and provide an analysis of risks.

Overall, the CD-ROM and accompanying textbook offer a comprehensive and practical learning experience for students interested in auditing and financial reporting.

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