Audit Program Design Part IINameCourseInstructorDate Designing tests of controls, substantive tests of transactions and analytical proceduresWhen designing tests of controls, substantive tests of transactions and analytical procedures it is necessary to first understand the business risks and internal control system (Puncel, 2008). This enables the auditor to set tolerable misstatements as well as assess control risk in the three cycles. The transactions related to accounts in the sales and collection cycle, payroll and personnel cycle and acquisition and payment cycle should be recorded in the right periodSales and collection cycleIn utilizing the tests of controls and substantive tests on the sales and collection cycle, there audit should focus on completeness, timing, classification, accuracy, posting and summarizationTest of controlThrough examining sales invoice, customer orders, and monthly statements, the auditor will verify existence of transactions In order to verify that accuracy, classification of transactions and completeness, and the tests of control will focus on shipping documents and compare with monthly statements. In order to verify timing and posting, the test of control will focus on timing for documents related to shipping, while the master file will be examined and compared with monthly statements to verify summarization of accounts receivables. Substantive testsIn verifying existence, the substantive tests will involve checking sales invoice and comparing with monthly statements. This will also include checking the master file to detect whether there are unusual sales transaction...