You will prepare a written memo, detailing your procedures around auditing ticket sales at FSU using a substantive analytical procedure. You should begin your written memo with some general background and then have individual sections of the memo cover each of the below items. Answers to the below questions should be incorporated into your memo, but should not be a bullet point or question and answer list. Consider including tables from your excel work wherever appropriate.
Whenever an auditor uses IPE in an audit procedure, the auditor must ensure that the information is reliable. According to auditing standards, when using IPE as audit evidence, what procedures should the auditor evaluate to determine whether the information is sufficient and appropriate for purposes of the audit?
Which of the following information from the case would be considered IPE and why?
Schedule of unsold tickets
Bank statement listing cash deposits
Listing of football games played
Recorded ticket sales obtained directly from general ledger
Average number of complimentary tickets provided (client’s calculation)
