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1. Auditors document their control risk assessments with narratives, flowcharts and checklists. Explain and give an example of narratives, flowcharts and checklists. 2. Explain what an audit program is. How is it used before, during and after the audit? Listen to the following YouTube about audit programs, if possible: https://www.youtube.com/watch?v=lLYoUNaKoQA 3. REA Diagram: REA Diagram using Visio, Excel, or Word James Company purchases pipes and fittings from a variety of vendors, both wholesalers and manufacturers. All vendors must be approved before a purchase order can be placed with a particular vendor. Only employees classified as purchase agents have authority to place purchase orders. James tracks inventory by a unique inventory item number. When merchandise received at the receiving dock is processed, only one receiving clerk counts the inventory items and records which items were received and enters quantities on the receiving report. Create an REA diagram for James Corporations expenditure cycle as described above. Be sure to include all relevant entities, relationships, attributes, key attributes, and car-dinalities (no need to do participation cardinalities).
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