Describe the alternative approach to record prepayments.

Q: In terms of configuration, what function does the audit trail play?

A: Here is the Answer

Q: What is an Audit Hook?

A: Auditing: The analytical process of evaluating and assessing the accounting information furnished by…

Q: How would you find errors in recording transactions and what is the process to correct errors?

A: Often, adding a journal entry will fix an accounting error. The journal entry adjusts the retained…

Q: Why should test data be saved after it has been used?

A: Test Data: The data which prepared before the conduction of a test to evaluate its results is known…

Q: How long must audit workpapers be maintained?

A: Definition:   Audit planning: Audit planning includes the designing of audit strategy for the…

Q: Explain what an account is and how it helps in the recording process

A: An account is used to record changes in the asset, liability, equity, revenue, and expense. It is…

Q: Identify the items from the following list that are likely to serve as source documents.

A: As it is difficult to check the boxes, i am providing the answer manually: The list that can be…

Q: What is meant by Wraparound filing?

A: Financial reporting: Financial reporting is the procedure used to communicate the information…

Q: You are required to find the data and

A: Return on Assets is Financial Ratio.which provides information about how much profit can be generate…

Q: Explain why there is a trade-off between information accuracy and information timeliness. Give an…

A: Report: The formal document used for providing information to the managers is called a report. The…

Q: two methods of recording prepayments

A: Prepayments are the advance amount paid for expenses to be incurred.

Q: What is an audit trail?

A: The accounting records of an entity are provided in an audit trail. It is used to examine different…

Q: What are Post-audit Tasks?

A: An audit is conducted on the accounting records and financial statements of a firm. The purpose of…

Q: What is an updated report?

A: Report: It can be defined as a document that provides the information to a specified group of people…

Q: examine the image provided and give the analysis and interpretation.

A: A cash flow statement shows the actual amount of cash available at the end of each period. This…

Q: List the causes of information risk,and explain how this risk can bereduced

A: Information Risk – It’s a kind of risk which occurs whenever various business risk decision are made…

Q: Identifying the condition of the data is part of which task?   A. Performing a data audit B.…

A: Identifying the data means you are in a search of some information that is useful for you.

Q: What very important precautions must be taken during the data conversion procedures?

A:

Q: needed, state the registr ts where the transaction ed.

A: The journal entries in the given question are made as follows:

Q: What are some audit procedures that can be performed using CAATs?

A: Computer-Assisted Audit Techniques (CAAT's): The technique which assists an auditor to perform audit…

Q: What are roll-forward procedures? Provide some examples

A: Roll-Forward Procedure: Auditors perform procedure to draw out the conclusion from an interim date…

Q: Explain how the magnetic audit trail functions.

A:

Q: Discuss the correction of errors in more detail.

A: Errors in Accounting: Error is a mistake committed in book keeping.

Q: Provide the proper format for recording a transaction.

A: Journal: Recording of a business transactions in a chronological order is called journal.

Q: Whose property are audit documentation (audit workpapers)? In what form must they be?

A: Auditing:                   It is a systematic verification of the books of accounts of an…

Q: What are the characteristics of a confirmation? Distinguish betweena confirmation and external…

A: Auditing: The process of critical examination and evaluation of the accounting information recorded…

Q: Mention two audit procedures relating to electronic data interchange controls

A: Audit: Audit is the process of verification of the compliance of the financial statements. It…

Q: The process of making the units of the filing name (pr segment) by which the record is to be stored…

A: The process of making the units of the filing name by which the record is to be stored is called…

Q: What is the purpose of a digital audit trail?

A: Digital audit trail means that path which is used to trace the actual transactions from the relevant…

Q: What is meant by (a) vouching, (b) tracing, and (c) scanning?

A: Auditing: Auditing is a systematic process wherein the auditor investigates the financial…

Q: What is a prefiling conference, and why might it be helpful to a registrant?

A: Prefilling conference: A prefilling conference is requested by a company if it faces problems or…

Q: Explain the importance of audit documentation please

A: Introduction:- Audit is to ensure that the companies financial statements are free from all material…

Q: Can a turnaround document contain information that is subsequently used as a source document? Why or…

A:

Q: Define reversing entries and discuss their purpose.

A: Reversing entry: Reversing entries are made at the beginning of the accounting period when the…

Q: How do reversing entries simplify recordkeeping?

A: Reversing Entries   Reversing entries are the journal entries that are made in the beginning of the…

Q: Define Prepayments.

A: Step 1 The outflow of money to reduce the liabilities occurred in the current accounting period…

Q: What questions should be asked after a returned item hasbeen counted and recorded?

A: Returned items are goods that are returned to the manufacturer or secondary retailers.

Q: Is it a turnaround document contain information that subsequently used as a source    document?…

A:

Q: Identify and explain the various stages of and parties to the collection of a check.

A: Cheque refers to a financial document which acts as an order to a bank to pay a particular amount of…

Q: Prepare reversing entries and explain their purpose.

A: Hi define reversing entries and explain their purpose is considered as question.

Q: Define specific identification method

A: Define specific identification method?