
Greenvale Construction Limited was started by four brothers who lived in the Toronto area.Over time,the brothers moved to different parts of the country.They decided it was a good idea to keep the company and organize their work as separate divisions under the same company.There are now three divisions,one for each of the brothers who are actively involved in construction.The fourth brother,Ted,is responsible for accounting and record keeping.Ted went back to school and completed an accounting designation,and now has three employees in the accounting area.
Each of the brothers has moved on to specialize in a different kind of construction work.In Toronto,it is mainly new home construction.In Edmonton,the work is primarily renovations of large homes and small commercial enterprises.In Halifax,the work is mid-sized to large commercial projects.All of the brothers prefer to subcontract their work rather than hiring full time construction employees,although some of the subcontract relationships have lasted over fifteen years now.
Required:
Explain what you would do to document your understanding of internal control for Greenvale.Identify potential risk areas where you would need to focus additional attention.
Correct Answer:
Verified
Update and ev...
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q12: Paul is in the process of performing
Q13: After considering a client's internal controls,an auditor
Q14: List and explain the methods of documenting
Q15: Each key control that the auditor intends
Q16: The procedures to test effectiveness of control
Q18: You have just finished documenting your understanding
Q19: Ideally,tests of controls should be applied to
Q20: Once an understanding of internal controls is
Q21: What are the two types of reports
Q22: On the basis of audit evidence gathered
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents