Homework Help is Here – Start Your Trial Now!
Business
Accounting
1. No collection was ever made for a sale to Sister Company because the invoice was never billed. The following matters were noted in the audit of Pat Express. A cash collection for the account of Rain Company was misappropriated by the cashier. 3. The accounts receivable clerk posted to the Kiko's account a sale made to Josie. 2. 4. A shipment included four pairs of JC-1 clamps rather than four individual clamps. 5. A properly executed invoice for a valid sale was not recorded. 6. An order was never billed because the shipping document was misplaced. 7. In an attempt to meet profit goals, more goods were shipped than customers had ordered. 8. A sale that occurred on December 31, the last day of the accounting period, was recorded in the next accounting period. Required: Answer the following questions about each of the eight situations. a. What control would have prevented or detected the misstatement? b. What test should an auditor perform to test the control? To which financial statement assertion does the misstatement relate? Exercise 2

1. No collection was ever made for a sale to Sister Company because the invoice was never billed. The following matters were noted in the audit of Pat Express. A cash collection for the account of Rain Company was misappropriated by the cashier. 3. The accounts receivable clerk posted to the Kiko's account a sale made to Josie. 2. 4. A shipment included four pairs of JC-1 clamps rather than four individual clamps. 5. A properly executed invoice for a valid sale was not recorded. 6. An order was never billed because the shipping document was misplaced. 7. In an attempt to meet profit goals, more goods were shipped than customers had ordered. 8. A sale that occurred on December 31, the last day of the accounting period, was recorded in the next accounting period. Required: Answer the following questions about each of the eight situations. a. What control would have prevented or detected the misstatement? b. What test should an auditor perform to test the control? To which financial statement assertion does the misstatement relate? Exercise 2

Corporate Financial Accounting
Corporate Financial Accounting
14th Edition
ISBN:9781305653535
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter7: Internal Control And Cash
Section: Chapter Questions
Problem 7.14EX
See similar textbooks
icon
Related questions
Question

Subject: Auditing and Assurance

Required B

192 Chapter 6 Exercises Exercise 1 1. No collection was ever made for a sale to Sister Company because the invoice was never billed. The following matters were noted in the audit of Pat Express. 2. A cash collection for the account of Rain Company was misappropriated by the cashier. 3. The accounts receivable clerk posted to the Kiko's account a sale made to Josie. 4. A shipment included four pairs of JC-1 clamps rather than four individual clamps. 5. A properly executed invoice for a valid sale was not recorded. 6. An order was never billed because the shipping document was misplaced. 7. In an attempt to meet profit goals, more goods were shipped than customers had ordered. 8. A sale that occurred on December 31, the last day of the accounting period, was recorded in the next accounting period. Required: Answer the following questions about each of the eight situations. a What control would have prevented or detected the misstatement? h What test should an auditor perform to test the control? To which financial statement assertion does the misstatement relate? a. Exercise 2 The following questions related to cash are included questionnaire for Niko Comnany
Transcribed Image Text:192 Chapter 6 Exercises Exercise 1 1. No collection was ever made for a sale to Sister Company because the invoice was never billed. The following matters were noted in the audit of Pat Express. 2. A cash collection for the account of Rain Company was misappropriated by the cashier. 3. The accounts receivable clerk posted to the Kiko's account a sale made to Josie. 4. A shipment included four pairs of JC-1 clamps rather than four individual clamps. 5. A properly executed invoice for a valid sale was not recorded. 6. An order was never billed because the shipping document was misplaced. 7. In an attempt to meet profit goals, more goods were shipped than customers had ordered. 8. A sale that occurred on December 31, the last day of the accounting period, was recorded in the next accounting period. Required: Answer the following questions about each of the eight situations. a What control would have prevented or detected the misstatement? h What test should an auditor perform to test the control? To which financial statement assertion does the misstatement relate? a. Exercise 2 The following questions related to cash are included questionnaire for Niko Comnany
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Audit Strategy, Audit Planning and Audit Programme
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
Corporate Financial Accounting
Corporate Financial Accounting
Accounting
ISBN:
9781305653535
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Corporate Financial Accounting
Corporate Financial Accounting
Accounting
ISBN:
9781337398169
Author:
Carl Warren, Jeff Jones
Publisher:
Cengage Learning
Financial & Managerial Accounting
Financial & Managerial Accounting
Accounting
ISBN:
9781337119207
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting (Text Only)
Accounting (Text Only)
Accounting
ISBN:
9781285743615
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
Financial & Managerial Accounting
Financial & Managerial Accounting
Accounting
ISBN:
9781285866307
Author:
Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:
Cengage Learning
SEE MORE TEXTBOOKS