Scenario The accounting manual contains instructions for recording sales transactions in the relevant accounting period, and CAIN Corp has excellent control rules and activities connected to authorisation of transactions for accounting entry. Every Friday at 5 p.m., the corporation shuts the accounting process in order to generate weekly management reports. The year-end date (cut-off date) is December 31, which fell on a Monday this year. The accounting, on the other hand, was completed as normal until Friday, and the accounts were closed for the year on Jan 4. a trail of paper All of the entries, including sales invoices, cash receipts, and shipping papers, were properly dated after December 31. The trial balance used to construct the financial statements, however, was dated December 31. Because the Friday shutdown was usual, no one noticed the lapse of a few days. Amount Over the January 1-4 period, CAIN recorded sales of P672,000 and a gross profit of P268,800. A total of P800,000 in cash receipts from clients' accounts was reported. Needed: Determine the ff. As an auditor, you have a unique set of skills. objective controls for auditing Controls tests
Scenario
The accounting manual contains instructions for recording sales transactions in the relevant accounting period, and CAIN Corp has excellent control rules and activities connected to authorisation of transactions for accounting entry. Every Friday at 5 p.m., the corporation shuts the accounting process in order to generate weekly management reports. The year-end date (cut-off date) is December 31, which fell on a Monday this year. The accounting, on the other hand, was completed as normal until Friday, and the accounts were closed for the year on Jan 4.
a trail of paper
All of the entries, including sales invoices, cash receipts, and shipping papers, were properly dated after December 31. The
Amount
Over the January 1-4 period, CAIN recorded sales of P672,000 and a gross profit of P268,800. A total of P800,000 in cash receipts from clients' accounts was reported.
Needed:
Determine the ff.
As an auditor, you have a unique set of skills.
objective controls for auditing
Controls tests
balance sheet audit.
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