Total computer Inc - Case Study Example

Case Study of Total Computer Inc In the six examples presented, the auditors send emails to the external source. The email is structured in such a way that it states the exact money that the company in question owns Total Computer Inc and requires a confirmation that is straightforward. The emails that received a confirmation are thus sufficient. However, in example two, James Hills writes an email back instead of placing a mark on the confirmation mail. The email used was verified to be valid and had not been intercepted since the auditor carried out follow up procedures of calling Dt. Bomb Inc. Although he states that the money indicated is correct, he does not state the exact money.

For this confirmation to be used in editing additional information from documents that show that the transaction took place such as cash receipts and delivery documents. In the last example, the auditor did not receive a confirmation response by email. This necessitated the undertaking of additional procedures such as examination of cash receipts and the contract between Total Computer Inc and Dot. Bomb Inc. These additional procedures helped in arranging for payments and correcting procedural issues where there was a violation of the contract between these two companies.

When dealing with account receivable balances, examination of the well stated confirmation records are adequate for auditing. However, in cases where the auditor is not in a position to get the confirmation messages, additional procedures can be carried out. These are documents that indicate the existence of the transaction or the assertion. This ranges from cash receipts, shipping documentation and others that show that the transaction took place.