1. ACC/492

2.  Objective  Audit Disney’s Expenditure Cycle  Elements  Control Environment  Risk Assessment  Control Activities  Information and Communication systems  Monitoring

3.  Questions  Control Environment  Risk Assessment QuestionYesNoDetails Is the business cycle defined? Are internal controls in place? Are internal controls adequate? QuestionYesNoDetails Has risk been defined? Have risk levels been set? Is risk points monitored?

4.  Questions Continued  Control Activities  Information and Communication Systems QuestionYesNoDetails Is there a clear segregation of duties? Are physical controls in place? Are authorization controls in place? QuestionYesNoDetails Are transactions within current period? Are recorded assets a result of transaction

5.  Questions Continued  Monitoring QuestionYesNoDetails Is data available to department heads? Are management evaluations done? Are quarterly reviews of transaction cycles done?

6.  Results  Help design the audit program  Gives auditors insight to company  Provide valuable information on internal controls

7.  Objectives  Transaction Objectives  Occurrence :  Actual goods and services exchanged  Completeness  Transactions made within current period  Accuracy  GAAP was followed in recording  Cutoff  Transactions fall within cutoff period  Classification  Coding is correct on transactions

8.  Objectives Continued  Balance objectives  Existence  Accounts are true amounts  Completeness  Accounts are complete  Rights and Obligations  Debts are current amounts due  Valuation and Allocation  Accounts are stated correctly on balance sheet

9.  Objectives Continued  Disclosure Objectives  Occurrence and Rights and Obligations  Proper disclosures are noted  Completeness  All disclosures required are noted  Classification and Understandability  Cycle information has been disclosed  Accuracy and Valuation  Information has been disclosed with correct amounts

10.  Plan  Review  Gather information  Analytical Procedures  Test Details of Balances  Observe Expenditure cycle  Confirm balances  Test clerical accuracy of expenditure records  Test details of balances  Test of details of disclosure

11.  Boynton, W. C., & Johnson, R. N. (2006). Modern Auditing: Assurance Services and the Integrity of Financial Reporting (8th ed.). Hoboken, NJ: Wiley.  Beasley, M. S., Buckless, F. A., Glover, S. M., & Prawitt, D. F. (2006). Auditing Cases: An Interactive Learning Approach (3rd ed.). Upper Saddle, NJ: Pearson Education.  Lander, G.P. (2004). What is Sarbanes-Oxley? (1st ed.). New York, NY: McGraw-Hill.   Louwers, T., Ramsay, R., Sinason, D., & Stawser, J. R.. (2007). Auditing and Assurance Services. New York, NY: McGraw-Hill.