1. 15 min Cable Co, Inc planning the audit part three

2. RISK RISK RISK controls - Revenue Collection cycle no segregation of duties same person –takes the orders –sets up the accounts –sends out the bills –takes in the cash

3. Analytics & tests of details substantive approach analytical procedures test of details (of account balances)

4. analytical approach # of cable customers X monthly fee

5. Cash Receipts= Accounts receivable @ 1/1/07 + Sales - Accounts receivable @ 12/31/07

6. assertions validity completeness accurate recording I thinks these are Cooper’s terms for: existence / occurrence completeness valuation

7. Change => risk started using a service bureau for payroll –SA 70 report on the service provider construction - make sure they capitalized: –labor –materials – interest –overhead and make sure depreciation is started on time

8. communication with predecessor auditor required by GAAS integrity of management Fraud, illegal acts Internal control related matters disagreements about accounting principles or auditing procedures reason for the change in auditors

9. Bill talked with Jeff Lyons @ Baker and Lyons no disagreements over accounting issues principles you’ve already gone over last year’s workpapers

10. analytics & tests of details substantive tests –analytical procedures –test of details (of account balances)

11. RISK RISK RISK rebuilds are the major focus

12. management letter accumulate ideas to improve the client’s operations a way to add value to the audit