Chapter 1 – EarthWear Introduction | Required Materials | Additional Resources |
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In this activity you will become further acquainted with EarthWear Clothiers and their auditors Willis and Adams. This introductory activity also provides an opportunity to become familiar with the structure and format of the EarthWear Online cases. |  EarthWear Introduction
(41.0K)
| EarthWear Clothiers Investor Website Willis & Adams, CPAs Website |
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Chapter 3 – Client Acceptance | Required Materials | Additional Resources |
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Willis and Adams staff partially completed the client acceptance/continuance forms for EarthWear, but there are a few more considerations that need to be made. After completing the remaining assessments using the background information provided, you will evaluate the continuance decision for EarthWear as an audit client. | Client Acceptance
(138.0K)
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If you have problems with the embedded file you can download it here:  Client Background
(31.0K)
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Chapter 3 – Audit Planning Memo | Required Materials | Additional Resources |
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Willis and Adams is beginning to prepare the audit planning memo for the upcoming audit of EarthWear. You have been asked to research a few aspects of EarthWear’s business that will aid in the planning process. You will also evaluate the results of some of the preliminary analytical procedures that were calculated to aid in assessing risk. | Audit Planning Memo
(96.0K)
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Chapter 3 – Materiality and Tolerable
Misstatement | Required Materials | Additional Resources |
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Using Willis and Adams’ guidelines and EarthWear’s unaudited financial statements, you will determine overall planning materiality and then allocate tolerable misstatement to accounts. | Materiality and Tolerable Misstatement
(104.0K)
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If you have problems with the embedded file you can download it here: Materiality Guidelines
(46.0K)
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Chapter 4 – Understanding the Entity and
Its Environment | Required Materials | Additional Resources |
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Exhibit 4-3 illustrated how auditors document their understanding of the client and its environment using a questionnaire. Willis and Adams staff partially completed the questionnaire for the upcoming audit of EarthWear, and your task is to complete the remaining questions. | Understanding the Entity and Its Environment
(108.0K)
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If you have problems with the embedded file you can download it here: Client Background
(31.0K)
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Chapter 5 – Preliminary Analytical Procedures | Required Materials | Additional Resources |
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Willis and Adams’ staff prepared detailed ratio analysis, trends, and common size balance sheet and income statements based on EarthWear’s unaudited financial statements. The procedures you perform will analyze the results of the computations and assess the overall financial condition of EarthWear. | Preliminary Analytical Procedures
(115.0K)
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Chapter 5 – Evaluation of Inventory
Audit Evidence | Required Materials | Additional Resources |
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Willis and Adams staff observed inventory counts at two warehouse locations for Earthwear. Your task is to evaluate the inventory count tags and inventory status sheet for accuracy, completeness, and existence. | Inventory Testing
(69.0K)
 Inventory Status Report
(79.0K)
Inventory Tags Germany
(196.0K)
Inventory Tags Japan
(158.0K)
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If you have problems with the embedded file you can download it here: Physical Inventory Count Description
(26.0K)
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Chapter 6 – Control Environment and
Internal Control Documentation | Required Materials | Additional Resources |
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Exhibit 6-1 illustrated how auditors document their understanding of the client’s control environment. The chapter also explains that a questionnaire can be used to document the assessment of control risk. Willis and Adams staff partially completed questionnaires to document their understanding of the client’s control environment and their assessment of control risk for the upcoming audit of EarthWear. Your task is to complete the remaining questions on these questionnaires. | Control Environment and Internal Control Documentation
(143.0K)
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If you have problems with the embedded file you can download it here:
Corporate Governance
(29.0K)
Internal Control Environment
(28.0K)
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Chapter 6 – Tests of Controls (Part A) | Required Materials | Additional Resources |
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Willis and Adams staff partially completed their control testing on a random sample of voucher packets. Your task is to complete the testing on the remaining four voucher packets and then judgmentally evaluate the results of the tests of controls (Part B of this case is outlined in Chapter 8 and includes a statistical approach to quantifying and evaluating the results of the test of controls). | Tests of Controls (Part A)
(60.0K)
Voucher Packet 164210
(334.0K)
Voucher Packet 185423
(348.0K)
Voucher Packet 190214
(366.0K)
Voucher Packet 195840
(309.0K)
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Chapter 8 – Tests of Controls (Part B) | Required Materials | Additional Resources |
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In Part A you completed controls testing on the sample of voucher packets selected by Willis & Adams staff and judgmentally evaluated the results (see Part A mini case description in Chapter 6). Your task is to statistically quantify and evaluate the results of tests of controls from Part A using the methods outlined in the chapter. | Tests of Controls (Part B)
(46.0K)
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Chapter 10 – Accounts Receivable Tests
of Details | Required Materials | Additional Resources |
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As part of the accounts receivable tests of details Willis and Adams staff requested balance confirmations from a random sample of EarthWear customers. Four of the confirmations indicated potential misstatements and required further review by the client. Your task is to review the results of these four confirmations and then evaluate any errors you detect. | Accounts Receivable Tests of Details
(59.0K)
AR Confirmations
(464.0K)
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Chapter 11 – Search for Unrecorded Liabilities | Required Materials | Additional Resources |
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In this activity you will perform a search for potential unrecorded liabilities. You will recommend specific transactions that require further investigation or follow-up with the client based on the results of the procedures you perform. | Search for Unrecorded Liabilities
(50.0K)
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Chapter 16 – Audit of Cash | Required Materials | Additional Resources |
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Willis and Adams staff partially completed the audit program for the audit of cash for EarthWear's primary general cash account. Your task is to complete the remaining audit program procedures by evaluating documents such as bank confirmations and cutoff bank statements. You will document your work utilizing the appropriate tick marks as outlined in the work papers. You will also identify the assertions tested by each procedure and describe any errors you detected or potential errors that would be detected by performing the procedure. | Audit of Cash
(119.0K)
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Chapter 19 – Ethics | Required Materials | Additional Resources |
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Review ethical challenges facing a Willis & Adams staff auditor and indicate what you would do if faced with a similar situation. | Ethics
(58.0K)
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If you have problems with the embedded file you can download it here: Ethics Background Document
(34.0K)
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