Option #2: Audit Procedures to Address Audit Risks This assignment is constructed to examine your understanding of the importance of proper auditing, done in accordance with generally accepted auditin
Information Produced by the Entity (IPE)
Module 4 Critical Thinking Assignment Option 1
Examples of IPE from a transaction process
Complete the following table, indicating whether the item is an example of IPE from a transaction process and explain why or why not in some level of detai.
| Item | IPE? | Why or why not? |
| Accounts receivable listing | ||
| Inventory rollforward | ||
| A listing of invoices paid to suppliers | ||
| An investment account end-of-year statement | ||
| The reconciliation of book to tax income tax differences for the current year | ||
| The write-off of accounts receivable | ||
| The write-off of obsolete inventory | ||
| A payroll exception report prepared by ADP | ||
| A report containing new vendors approved by the purchasing department | ||
| An unpaid vendor invoice | ||
| A list of product liability claims from customers | ||
| The allocation of overhead to various products in production | ||
| Warranty conditions provided to customers on sales contracts | ||
| The bank reconciliation prepared by the Company’s bank |
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