Essay on Project 2

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Homework 3 – Case 6
Exercise 6-1
After examining the audit document in Exhibit 6-1, I found a few problems: 1) For the Comment A, Heyman found that the prices on purchases of 4/1/12 and 7/25/12 do not agree with Master Price list by $200 and $360 respectively. Thomas said that the difference represents monthly purchases from Cypress at different prices than shown in the current price list.
The explanation here is not clear. Why is there price difference? Why the different prices are not shown in the Master Price list? The ratio of the $200 difference to $4210.40 total dollar amount of the check is different from the ratio of the $360 difference to $2292.40; thus, what is the exact reason that caused such differences? 2) For the Comment C, Heyman found there are four requisitions were approved by Miller rather than Rogers. However, Heyman only made three “C” tick marks in the audit procedures column.
Thomas indicated that only requisitions estimated to be over $1,000 must be approved by Rogers. The dollar amount of the check that was paid on 5/22/12 to Cypress Products is $841.70, which is less than $1,000. This could be the fourth purchase requisition which were approved by Miller rather than Rogers.
Heyman did not give ultimate resolutions to the problems. Instead, Heyman merely passed the problems for further testing.
Exercise 6-3
If Heyman had found one or more apparent inconsistencies during his work on this part of the audit, as an assistant, Heyman

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