Case 6 - Exercise 2
Lakeside Company
Inventory Purchases and Cash Disbursements Transactions
December 31, 2006
Audit document No. N-3
Prepared by: AM 5/23/05
Reviewed by:
Reviewed by:
Date
Vendor Purchase Requisition Number Receiving Report Number
Invoice Number
Check Number
Audit
Procedures
8/20/06 Cypress Products 6702 3918 711 3091
8/21/06 Cypress Products 6703 3919 802 3121 F
8/24/06 Cypress Products 6705 3920 991 3164 F
8/27/06 Cypress Products 6704 3921 1261 3203 E H L
8/28/06 Cypress Products 6706 3922 1313 3251 D
9/2/06 Cypress Products 6707 3923 1406 3310 G
9/3/06 Cypress Products 6708 3924 1510 3345
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D. Part number of Televisions listed on Vendor Invoice does not match Purchase Requisition and Receiving Report. Is only off by one letter and the price matches that of the item ordered and received in the Master Price list. Verified with Thomas that this is a typo on the Vendor’s part. No notation of discrepancy was made upon client’s review of Vendor Invoice.
E. Enquired with Thomas regarding procedures when merchandise is back-ordered so that same merchandise is not re-ordered upon notice that it is low. An additional copy of the Purchase Requisition is made at time of comparison with Receiving Report, highlighting line with item and note about backordered items. This is kept with other open Purchase Requisitions in Treasurer’s Department. Change system flowchart.
F. Some Purchase Requisitions were made out by Thomas’ assistant Wisdon and some were approved by Rogers’ assistant Miller. Thomas and Rogers both verified that these signatures are authorized. Change system flowchart.
G. Vendor invoice #1406 was not priced, footed, and extended. Did so now to confirm. Client paid invoice with check without evidence that this step had been done.
H. Price of part KJ32-K on Vendor Invoice does not match Master Price list. Instructed Thomas to update Master Price list.
I. Price of part BV24-R on Vendor Invoice does not match Master Price list. Instructed Thomas to update Master Price list.
J. Price of part PO88-Q on Vendor Invoice does
First, we conducted risk-based approach with data analysis techniques-unusual invoice and unusual comments, to identify the unusual items that are in the accounts receivable detailed listing, and tested whether there are invoices outside the expected range of invoice number and “special” comments associated with accounts receivable items. As a result, there were no invoice number out of range, and Invoice 1000919, 1000845, 1001097 are “special” comments associated with accounts receivable.
5. No because the amount of the invoice fluctuates for the same product in this type of scheme and therefore it would be difficult to figure out how much the invoice should have been made out for.
Student Analysis December 3 Discovered that a $84.40 journal entry for advertising printing charges had been recorded in error to the Miscellaneous Expense account rather than the Advertising Expense account. The date of the original cash transaction entry is December 2 and the invoice number is 23339. Follow instructions 1-5 below: The entry correction procedure for the Rebel Ridge Snowmobile accounting system requires that each error entry be backed out and then reentered correctly. 1. Using the December 2 date, debit the Cash (101) account and credit the Miscellaneous Expense (629) account for the $84.40. Click on the Verify Journal button. 2.
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.
H) Regarding your email message from September 28 regarding the slow payment of your invoice, it’s important for you to realize that we’ve just undergone a massive upgrade of our accounts payable system and payments
Postulate 3: Fred’s district is follows this because they are considering several sources of data before reevaluating (pg. 85). Fred’s teacher filled out a Teacher Rating Scale and they are going to re-test him before consideration. They are also allowing students in their district to be considered during different points in their school careers (p85). Fred was not identified in second grade, but they are beginning the process for him to be considered two years later.
Amendment #15 was billed 100% in the previous billing but you are billing again in this invoice. (Also the previously billed amount & percentage is off in the current invoice)
All goods purchased pass through a receiving department under the direction of the chief purchasing agent. The duties of the receiving department are to unpack, count, and inspect the goods. The quantity received is compared with the quantity shown on the receiving department’s copy of the purchase order. If there is no discrepancy, the purchase order is stamped “OK—Receiving Dept.” and forwarded to the accounts payable section of the accounting
I have been ask to pull back FSM-6770 – Stand for 4K Monitor that we sold to Tift Regional back on 1/11/2016. Supply chain is requesting for this unit because your customer was charged for it. I believe the customer decided to purchase the wall mount instead of the stand. Therefore, at this moment, they are charged for both the wall mount and stand. The customer stand is currently in your possession and we would like to ask if you can bring it back to us. Please
(2:33) Client advised the client that she was checking on what the cost of the appraisal was after 30 seconds went by Angie confirmed with the client that MB sent a copy of the invoice and never got back to the client with the cost of the appraisal. Not sure why this could not be provided to the client if you go in AMP (7) scroll to the refund and hit enter it would give a break down of the cost of the
The statement and invoices you forwarded reflect total balance due of $13,567.00. We are unable to process invoices that exceed total maximum price of the contract. Invoices T-4969 for import ($3,000.00) and T-6284 ($6967.00) for development will be processed. I will update you on the payment status once a check is issued.
On 6/2/16 at about 7:30 PM, RAD 1 associate Christopher Veizaga (veizaga) asked security if he would be able to leave out of the B building bypass with a large box. The box contained 17 TC-55 also known as dolphins. Shift Supervisor (S/S) Enmanuel Cabrera then asked Mr. Veizaga, why exactly did he have to remove the box out of the building? Mr. Veizage stated that it was a last minute shipment to another site and did not think that he needed to put an asset removal form because it is not product. S/S Cabrera quickly spoke with Operation Manager (O/M) Thomas Gerlach about the situation at hand. O/M Gerlach stated to let the gentlemen leave with the box but to just document the individual’s information and take pictures of the content of
In April we received a check from Marjorie Creech for $750.00. Paperwork was given to you along with copy of check. Payment was applied to invoice 250-20987370 $692.78. Do you know if there is any additional work or customer overpaid the invoice? The remaining balance sitting on customer account 11205612 is
Several of the officers of the company seem reluctant to contact the processor even though the math on the invoice is not correct. The invoice indicates that approximately $500,000 of the sales (2,000 items) are at 0.1% plus $.22. This would be the interchange price for a regulated debit card after add a markup of .05%. It also shows approximately $ 150,000 (300 items) at 1.48% plus $.05. When you do the math, you conclude that the total cost should be $3,175. You would expect this amount to carryforward to the front of the invoice, but it does not.
The second error was found in 2014 financial year and 2015 half-year financial statements UK, where VAT is included twice in receipts from customers (ASX Company announcements for SLATER & GORDON LIMITED 2015). According to AASB 10 Consolidated Financial Statements Para B86, intragroup cash flows relating to transactions between entities of the group should be fully eliminated in consolidated financial statements (AASB10 2010). In this case, VAT arising from intragroup transactions should