After identifying specific financial reporting material misstatement risks, management and the external auditors are required to identify and test controls that mitigate the risks.
Auditors pay special attentions during the vouching process as part of the verification of transaction to identify teeming and lading kind of accounting.
Record keeping was so bad that auditors couldn't rule on an additional $290,000 worth of expenses on corporate cards, partly because they could not figure out which senior manager charged them.
