1.) be able to give examples of control in transaction test for detecting the statement related...
Homework Answers
Answer to 1) Examples of test of Controls for detecting the statement related to Sales and Shipments
For Eg. A Ltd, a company involved in trading of shoes , sold 100 pairs @ 500 each to a customer named MR.X .
Auditor of A Ltd wants to check the test of controls for detecting statement related to sales and shipments.He did those on random sampling basis and he picked a customer Mr.X in sales register .
i) Auditor examined the sale invoice for supporting bill of lading and customer order as it is possible that
- sale which is recorded with no shipment details.
- sale recorded with invoice amount of (100*500=50000) more than once .
- Shipments made to non existent customers i.e shipment made to some other person who is not Mr.X.
ii) Account for sequence of shipping document.
iii) Examine the approved price list for accuracy and proper authorization.
iv) Examine the document package for Duplicate Verification.
v) Examine evidence that accounts receivable master file is reconciled to the General ledger.
---------------------------------------------------------------------------------------------------------------------------------------------------------------------
Answer to 2) Example for test of Control for completeness and accuracy in Cash Receipts Journal
For Eg. Neo Ltd , a company found a cash receipt of 20,00,000 in its Cash receipt journal , so the internal auditor of the company wants to check the completeness and accuracy of those receipts in a following manner :
- Completeness : Observe Prelisting of Cash receipts and Compare the prelisting with the duplicate deposit slip.
- Accuracy : Observe whether accountant reconciles bank account and prepare a proof of cash receipts to reconcile cash receipts as per books with cash receipts as per bank.
----------------------------------------------------------------------------------------------------------------------------------------------------------------------
Add Answer to:
1.)
be able to give examples of control in transaction test for
detecting the statement related...
18 The following (1 through 16) are the balance-related and transaction-related audit objectives. 1 2 3...
18 The following (1 through 16) are the balance-related and transaction-related audit objectives. 1 2 3 Balance-related objectives Existence Completeness Accuracy Cutoff Detail tie-in Realizable value Classification Rights & obligations Presentation 4 5 6 7 8 9 Transaction-related objectives Occurrence Completeness Accuracy Classification Timing Posting & summarization Presentation 10 11 12 13 14 15 16 Identify and write the number of the specific audit objective (1 through 16) that each of the following specific audit procedures satisfies in the audit...
Requirement b. For each control, state which transaction-related audit objective(s) is (are) applicable. Transaction-related Audit Internal...
Requirement b. For each control, state which transaction-related audit objective(s) is (are) applicable. Transaction-related Audit Internal Controls Objective(s) 1. Approved purchase orders are required for all acquisitions of goods. Prenumbered receiving reports are prepared as support for acquisitions and 2. numerically accounted for. Accuracy Dates on receiving reports are compared with vendors' invoices before entry into the 3. acquisitions journal. Classification Completeness 4. Account classifications are reviewed by someone other than the preparer. Occurrence 5. Vendors' invoices are recalculated before...
Auditing The following are various audit procedures performed to satisfy specific transaction-related audit objectives as discussed...
Auditing
The following are various audit procedures performed to satisfy
specific transaction-related audit objectives as discussed in
Chapter 6. The general transaction-related audit objectives from
Chapter 6 are also included.
(Objective 7-4) The following are various audit procedures performed to satisfy specific transaction-related audit objectives as discussed in Chapter 6. The general transaction-related audit objectives from Chapter 6 are also included. Audit Procedures 1. Trace from receiving reports to vendors' invoices and entries in the acquisitions journal. 2. Add the...
7-30 (OBJECTIVE 7-4) The following are various audit procedures performed to satisfy specific transaction-related audit objectives...
7-30 (OBJECTIVE 7-4) The following are various audit procedures performed to satisfy specific transaction-related audit objectives as discussed in Chapter 6. The general transaction-related audit objectives from Chapter 6 are also included. Audit Procedures 1. Trace from receiving reports to vendors' invoices and entries in the acquisitions journal. 2. Add the sales journal for the month of July and trace amounts to the general ledger. 3. Examine expense voucher packages and related vendors' invoices for approval of expense account classification....
Requirement b. For each internal control, identify the transaction-related audit objective(s) to which it applies. Transaction-related...
Requirement b. For each internal control, identify the transaction-related audit objective(s) to which it applies. Transaction-related audit Internal control objective(s) Human resource policies require an investigation of an employment application from new employees. Investigation includes checking the employee's background, former 1. employers, and references. Approval of department head or foreman on time records is required before preparing 2. payroll Accuracy All prenumbered time records are accounted for before beginning data entry for 3. preparation of payroll. Accuracy and Occurence Classification...
6-33 (OBJECTIVES 6-8, 6-9) The following are specific transaction-related audit objectives applied to the audit of...
6-33 (OBJECTIVES 6-8, 6-9) The following are specific transaction-related audit objectives applied to the audit of cash disbursement transactions (a. through f.), management assertions about classes of transactions and events and related disclosures (1 through 6), and general transaction-related audit objectives (7 through 13). Specific Transaction-Related Audit Objective a. Existing cash disbursement transactions are recorded. b. Recorded cash disbursement transactions are for the amount of goods or services received and are correctly recorded. c. Cash disbursement transactions are properly included...
Topic: Cash flow statement Total marks: 7.5 Part I 1. Give two examples of cash receipts...
Topic: Cash flow statement Total marks: 7.5 Part I 1. Give two examples of cash receipts and two examples of cash payments that fit into each of the following classifications: (1.5 marks) a. Operating activities. b. Investing activities. c. Financing activities. 2. Why are payments and receipts of interest classified as operating activities rather than as financing or investing activities? (1.5 marks)
Question 1 2 pts Assuring that the accounts receivable master data reflects all cash collections recorded...
Question 1 2 pts Assuring that the accounts receivable master data reflects all cash collections recorded in the cash receipts event data addresses the control goal of: ensure input accuracy O ensure update accuracy O ensure update completeness o ensure input completeness
1. Consider the following statements: I. Lapping involves covering a theft related to accounts receivable...
1. Consider the following statements: I. Lapping involves covering a theft related to accounts receivable by using a later cash receipt to cover the previous theft. II. A “positive confirmation” requests that customers respond whether they agree or not with the amount due to the entity stated in the confirmation. a. I is true; II is true b. I is true; II is false c. I is false; II is true d....
14-26 (Objective 14-3) The following are selected transaction-related audit objectives and audit procedures for sales transactions:...
14-26 (Objective 14-3) The following are selected transaction-related audit objectives and audit procedures for sales transactions: Transaction-Related Audit Objectives 1. Recorded sales exist. 2. Existing sales are recorded. 3. Sales transactions are correctly included in the accounts receivable master file and are correctly summarized. Procedures 1. Trace a sample of shipping documents to related duplicate sales invoices and the sales journal to make sure that the shipment was billed. 2. Examine a sample of duplicate sales invoices to determine whether...
18 The following (1 through 16) are the balance-related and transaction-related audit objectives. 1 2 3 Balance-related objectives Existence Completeness Accuracy Cutoff Detail tie-in Realizable value Classification Rights & obligations Presentation 4 5 6 7 8 9 Transaction-related objectives Occurrence Completeness Accuracy Classification Timing Posting & summarization Presentation 10 11 12 13 14 15 16 Identify and write the number of the specific audit objective (1 through 16) that each of the following specific audit procedures satisfies in the audit...
Requirement b. For each control, state which transaction-related audit objective(s) is (are) applicable. Transaction-related Audit Internal Controls Objective(s) 1. Approved purchase orders are required for all acquisitions of goods. Prenumbered receiving reports are prepared as support for acquisitions and 2. numerically accounted for. Accuracy Dates on receiving reports are compared with vendors' invoices before entry into the 3. acquisitions journal. Classification Completeness 4. Account classifications are reviewed by someone other than the preparer. Occurrence 5. Vendors' invoices are recalculated before...
Auditing
The following are various audit procedures performed to satisfy
specific transaction-related audit objectives as discussed in
Chapter 6. The general transaction-related audit objectives from
Chapter 6 are also included.
(Objective 7-4) The following are various audit procedures performed to satisfy specific transaction-related audit objectives as discussed in Chapter 6. The general transaction-related audit objectives from Chapter 6 are also included. Audit Procedures 1. Trace from receiving reports to vendors' invoices and entries in the acquisitions journal. 2. Add the...
7-30 (OBJECTIVE 7-4) The following are various audit procedures performed to satisfy specific transaction-related audit objectives as discussed in Chapter 6. The general transaction-related audit objectives from Chapter 6 are also included. Audit Procedures 1. Trace from receiving reports to vendors' invoices and entries in the acquisitions journal. 2. Add the sales journal for the month of July and trace amounts to the general ledger. 3. Examine expense voucher packages and related vendors' invoices for approval of expense account classification....
Requirement b. For each internal control, identify the transaction-related audit objective(s) to which it applies. Transaction-related audit Internal control objective(s) Human resource policies require an investigation of an employment application from new employees. Investigation includes checking the employee's background, former 1. employers, and references. Approval of department head or foreman on time records is required before preparing 2. payroll Accuracy All prenumbered time records are accounted for before beginning data entry for 3. preparation of payroll. Accuracy and Occurence Classification...
Question 1 2 pts Assuring that the accounts receivable master data reflects all cash collections recorded in the cash receipts event data addresses the control goal of: ensure input accuracy O ensure update accuracy O ensure update completeness o ensure input completeness
Most questions answered within 3 hours.
-
Where is the error in this code sequence?
String s1 = "Hello";
String s2 = "ello";...
asked 10 months ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 10 months ago -
Consider this reaction:
Al2(SO4)3 (aq)+ BaCl3
(aq) Al2Cl6 (aq)- +
3BaSO4(s) . What is the...
asked 10 months ago -
Suppose that Savneet is considering increasing her
recent random sample from 20 car rentals to 40...
asked 10 months ago -
Trucks arrive at an unloading terminal at an average rate of 120
per hour.
Trucks arrive...
asked 10 months ago -
Why are methanol and ethanol completely soluble in water while
octanol is not very little soluble....
asked 10 months ago -
A facilities manager at a university reads in a research report
that the mean amount of...
asked 10 months ago -
When the CuSO4 is rehydrated by adding water to the anhydrous
compound, is this an endothermic...
asked 10 months ago -
A ray of sunlight is passing from diamond into crown glass; the
angle of incidence is...
asked 10 months ago -
A block of mass 0.249 kg is placed on top of a light, vertical
spring of...
asked 10 months ago -
how do the kidneys compensate in the presences of acidosis
a) trigger hyperventilate
b) reserve acid...
asked 10 months ago -
Question 501 pts
The rental rate of capital to the firm increases. Which of the
following...
asked 10 months ago