Acquisition Payment Cycle

An accounting cycle is a process, or a series of activities, that consists of collecting an organization’s transactions at the end of a reporting period to prepare essential financial statements of a business (Fleury, 2015). The accounting cycle is a strict, methodical set of rules used to ensure the accuracy and conformity of financial statements (Investopedia, 2017). The steps involved with an accounting cycle, the roles each of the step facilitate, the impact of omission, and what financial statements are assembled from the accounting cycle data.

Posting and Updates: Foots sales journal and traces total to master file and GL, Trace invoice amounts to a/r , Traces source documents to acct records

This control is directly related to the accuracy transaction-related audit objective for sales. The auditor might test the effectiveness of this control by examining a sample of duplicate sales invoices for the clerk’s initials indicating that the unit selling price was verified.

According to Financial and Managerial Accounting, the accounting cycle is the approach companies use to create their financial statements

Sales invoices are prepared in batches on a daily basis using numbered sales invoices. Sales invoice numbers are automatically generated by the company’s computer system. The accounts receivable clerk does not have appropriate computer rights to override the computer-generated invoice number. Upon preparing sales invoices, the accounts receivable clerk verifies that the first invoice number of the batch is consistent with the last invoice number of the previous batch. Inconsistencies or skipped sales invoice numbers are investigated and resolved before new sales invoices are prepared. The items shipped are compared to the items billed for proper quantity, price, and other sales order terms.

There are several red flags in the invoices. There are several invoice numbers that are repeated and have an A at the end of the repeated invoice.

2.     (TCO 2) As required to complete Course Project 1, one must follow the cycle that includes 10 steps to complete the accounting cycle. (1) Explain how information from the journal entries get into the ledger accounts (15 points) and (2) provide an example of information that would be transferred. (10 points)(Points : 25)

The Business Record Certification Statement (Exhibit C-10) was provided to show that the EBT transactions the OIG used to create their analysis were complete and unaltered as shown in the Xerox database. The ALJ finds that these documents show how the OIG determined an average

The following additional facts are collected for use in making adjusting entries on December 31 prior to preparing financial statements for the company’s first three months. Journalize the following adjusting journal entries in the General Journal on page 6 and then post them to

After the acquisition, the examiner must verify and confirm that the data captured is correct.

In-process inspection and test to determine the status of the process (rather than for product acceptance). .

Trace items returned to the receiving report, taking note of quantity and date received (S‑4).

When testing of internal controls indicates that there may be significant deficiencies, then the auditor

d. Trace the date, check number, and amount of outstanding item – Occurrence & Completeness. (AU-C 315.A114 a.i-ii)

c. The recording of transshipping transactions as retail sales. – The auditor should obtain documentation of the transshipping transaction. The auditor should then trace the