Reference no: EM133744217

Discussion Post: Advance Assurance Services

Chapter 7: Revenue and Collection Cycle
Chapter 8: Acquisition and Expenditure Cycle

Initial Postings: Read and reflect on the assigned readings. Then post what you thought was the most important concept(s), method(s), term(s), and/or any other thing that you felt was worthy of your understanding in each assigned textbook chapter.Your initial post should be based upon the assigned reading for the week, so the textbook should be a source listed in your reference section and cited within the body of the text. Other sources are not required but feel free to use them if they aid in your discussion.

Also, provide a graduate-level response to each of the following questions:

Payroll Processed by a Service Organization. Assume that you are the audit senior conducting a review of a new client's payroll system. In the process of interviewing the payroll department manager, she makes the following statement: "We don't need many controls because our payroll is done outside the company by Automated Information Processing, a service organization."

Task

• Evaluate the payroll department manager's statement and describe how a service organization affects an auditor's review of controls.