Comptronix Corporation-Case study on identifying Inherent and Control Assignment

Comptronix Corporation-Case study on identifying Inherent and Control Risk factors (Using the facts of the case and the relevant AUDITING standards, answer each of the questions) - Assignment Example Taking into account all the relevant factors, the auditor has to apply his professional knowledge and skills in taking appropriate decisions. â€Å"IR = Inherent risk (the risk that an assertion is susceptible to a material misstatement, assuming there are no related controls)† (Statements on Auditing Standards (SASs): Risk Assessment Standards par. 3). Examples of financial records that have low Internal Risk include fixed assets or traded securities as opposed to accounts with high Internal Risk. For instance, those for which estimates have to be used and computations have to be conducted. An audit comprising of a physical examination of Comptronixs equipment might have revealed that recognized assets do not exist. Considering the age of certain equipment, there is a need to take into account their depreciation. Thus, the actual value of the some equipment may not correspond to their book value. â€Å"Fictitious transactions frauds involve important accounts or just assets or revenues in general† (Ketz 407). Besides auditing in a way that would have exposed the absence of certain purchases of equipment, the assessor could have also carried out an examination of check accounts and bank records to see where and by whom the vouchers were cashed. This would have revealed that the checks were not cashed in by an outside party. Thus, the company would have been in a clear position to establish the involvement of someone within the organization in the said manipulation. In the same manner as in the case of fictitious accounts for equipment, the assessor could have checked the inventory to confirm the decrease in inventory of goods for sale with the actual sales to the consumers. â€Å"The auditor’s objective in examining accounts receivable is to form an opinion regarding management’s representation that an account receivable is presented fairly in conformity with

Simulation Technology Article Example | Topics and Well Written Essays - 500 words

Simulation Technology - Article Example The simulations feign an activity, which is "tangible", therefore, it can be termed as "virtually real". The activity is simulated so fittingly that there is slight difference amid the real environment and the simulated one; in addition, the same form of learning involvement can happen. Simulations are "hands-on", encompassing learners so that they become partakers, not mere observers or listeners. Students absorb effectively from their individual experiences than partaking others' experiences associated to them (Banks, 2010). Simulations are encouragements for learning. Learner’s involvement into the simulation activity is very deep that it interests the student to learning more concerning the activity and its field matter. Simulations are custom-made to the learner. Once they are devised precisely for their audience, simulations can take progressive requests into consideration. Simulations are inspirational where student input is embraced and events are fabricated to encourage learners to improve the activity through contributing their individual ideas. Simulations are also developmentally valid; they can make allowance for the students' developing level. Simulations are empowering meaning students undertake responsible roles, look for ways to thrive, as well as devising problem-solving tools because of the simulation interaction (Sherman, 2008).