Description
Part (1) Completed Workpaper Excel File (available at: http://lindsay.fildred.com/teaching-cases/sprandel-inc/): Each
review note should be clearly addressed or closed in the Excel file. In some instances, the review note may be a
relatively easy documentation fix, such as Review Note 1 of 6, for which you can make the requested edit and note that you have closed the review note. For example, you may write, ‘‘RN CLOSED—We changed the date’’ in the comment box. In other instances, such as Review Note 3 of 6, the review note may require you to perform other procedures. In these circumstances, as mentioned above, you may need to add columns or tickmarks to document procedures and issues or exceptions you find. It is up to you to decide how to document these items in the work papers,
just be clear and consistent in the formatting you choose. In these instances, in the comment box, you should briefly note changes you made to the working paper to point your audit manager to the items to review. For example, you may
write ‘‘RN CLOSED—See new tickmarks X and Y for additional procedures performed and noted issues we
uncovered.’’4 Finally, you should consider whether the conclusion on each work paper is still accurate or if it needs to be modified in light of any issues or exceptions you find.
Part (2) Completed Memo: Write a memo to the audit manager (your instructor) in the format provided in Appendix B,
and include discussion of the following:
a. how you addressed each review note;
b. all issues/exceptions you found when performing the added audit work that should be brought to the attention of
your audit manager;
c. further audit steps that you believe may be necessary;
d. whether you believe the conclusion of the workpaper should be modified; and
e. responses to the Critical-Thinking Questions.