The following questions related to cash disbursements are included in the internal control questionnaire for LUNA Company: 1. Are all supporting documents effectively cancelled when checks are signed? 2. Are cash discounts to which the entity is entitled taken? 3. Does someone independent of accounts payable reconcile monthly vendor’s statements to vouchers included as liabilities at the end of the period? Required: For each of the above items a. Identify the financial statement assertion to which the control relates. b. Identify a potential misstatement that could arise from the absence of the control. c. Indicate an audit procedure the auditor might perform to test the con

Q: This account is used to record in the Regular Agency (RA) books the receipt of Notice of Cash…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: You are the in-charge auditor examining the financial statements of the Gutzler Company for the year…

A: In order to obtain accurate audit evidence, there are other audit procedures which are required to…

Q: You are conducting an audit of the MART CORPORATION for the year ended December 31, 2018.  The…

A: The bank reconciliation statement is prepared to equate the balances of cash book and passbook with…

Q: Which of the following is not an objective of the cash audit? determine that a. A long-term…

A: Objectives of Cash Audit One of the objectives for a cash audit is to verify that the recorded cash…

Q: Identify each of the following reconciling items as part of the cash reconciling process as: (A)…

A: Bank reconciliation: It is a statement drawn up by the business to verify the cash book balance with…

Q: The following control procedures are used in Keaton Company for over-the-counter cash receipts. (a)…

A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

Q: You are auditing Abra Inc.’s cash in bank for the year ended December 31, 2021. You assessed control…

A: A bank Reconciliation statement is a report that is prepared to know the differences between…

Q: Tott Company has the following internal control procedures over cash disbursements. Identify the…

A: Internal control refers to the policies and plans of the business organization along with other…

Q: Which of the following is an internal control that will prevent paid cash disbursementdocuments from…

A: Internal Control: Internal control is a process which ensures continuous reliability of…

Q: Erin Company recently changed its system of internal controls over cash disbursements.  The system…

A: Internal control activities are used so that accounting system is prevented from errors and frauds.…

Q: Which of the following is not an appropriate internal control for cash receipts over the​ counter?…

A: Solution: Followings are appropriate internal control for cash receipts over the​ counter: 1. The…

Q: describe the internal control weekness in Two symbols cash disbursement system and discuss the risk…

A: Internal Control Weakness:   It refers to failure in the implementation or effectiveness of internal…

Q: Rosenquist Company has the following internal control procedures over cash receipts. Identify the…

A: The principles of internal control are the concepts that require management to set procedures in…

Q: Each morning the controller gets the prior day’s list of remittances, a copy of the payment report,…

A: The controller of the cash can determine whether the cash received and remittance received were…

Q: Which of the following are characteristics of an effective control of cash disbursements? I.…

A: Solution: Following are the characteristics of an effective control of cash disbursements: I.…

Q: Douglas and Son, Inc., uses the following process for its cash receipts: The company typically…

A:

Q: Which of the following statements is not a good internal control for petty cash.    a. The officer…

A: The internal control for petty cash funds is applied to prevent petty cash frauds in the company.

Q: When auditors perform the bank reconciliation test, what would be the appropriate audit procedure…

A: Auditing procedures of Bank Reconciliation Bank reconciliation is one of the important part in the…

Q: Identify which control activity is violated in each of the following situations and explain how the…

A: Employees have physical custody of assets but do not have access to accounting records –…

Q: The following information was obtained in connection with the audit of SOLEDAD COMPANY'S cash…

A: "Since you have posted a question with multiple sub parts, we will solve first three sub parts for…

Q: Which of the following statements are true regarding the control of cash receipts and cash payments?…

A: To control cash receipts and cash payments, Over-the-counter cash sales should be recorded on a cash…

Q: True or False - Monthly bank reconciliation is one of the internal control features in every…

A: SOLUTION MONTHLY BANK RECONCILIATION  IS ONE OF THE INTERNAL CONTROL FEATURE IN EVERY COMPANY ,…

Q: an internal control over cash receipts and disbursements, should be prepared on a monthly basis and…

A: Note: Since you have asked multiple questions, we will solve the first question for you. If you want…

Q: Which of the following items would normally be EXCLUDED from the amount to be reported as cash on a…

A: Statement of financial position is the one on which the company's assets and liabilities are…

Q: Each situation below describes an internal control weakness in the cash payments process.…

A:

Q: Nolan Company has the following internal control procedures over cash receipts. Identify the…

A: Internal control refers to the policies and plans of the business organization along with other…

Q: Entity A maintains a petty cash fund. At any given point of time, the cash on hand and the petty…

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: Payment by check is an important internal control over cash payments because a. the check must be…

A: Internal control: Internal control is a process which ensures continuous reliability of…

Q: XYZ Company has considerable cash collections on a regular basis. The cashier receives the cash,…

A:

Q: Payment by check is an important internal control over cash payments because the check must be…

A: Payment check: It is a method of doing the payment for any invoice raised by the vendor, the other…

Q: Based on your accounting experience, advanced knowledge and practical experience with concepts…

A: A bank reconciliation memorandum aligns an organization's bank account with its financial documents…

Q: Explain why each of the following combinations of task should or should not be separated to achieve…

A: The approval and write-offs of bad debt and reconciliation of account receivable and general control…

Q: You are auditing Abra Inc's cash in bank for the year ended December 31, 2021. You assessed control…

A: The adjusted cash balance as per the bank book can be calculated by preparing the statement of proof…

Q: financial statement assertion

A: Financial statement assertion is the claim like statement made by management regarding the…

Q: he accounting clerk pays all obligations by pre numbered checks. What are the strengths and…

A: It was must obligatory in the internal control over the cash payments which are taken care of by the…

Q: A common audit procedure to verify the existence assertion of cash account balances is: a.…

A: Existence assertion is the assertion that the assets and the liabilities which is appearing the…

Q: Which of the following are characteristics of an effective control of cash disbursements? I.…

A: Cash disbursements: Cash disbursements refers to the cash outflow from the company. The payment can…

Q: The accounting clerk pays all obligations by pre numbered checks. What are the strengths and…

A: It was must obligatory  in the internal control over by the cash payments which are taken care by…

Q: Evaluate the following statements Statement 1: Under the punctuating system of petty cash…

A: Cash and cash equivalents is one of the items recorded as a current asset in the balance sheet of an…

Q: Which one of the following statements is true? a.Good cash management practices dictate that a…

A: Cash: Cash is the money which is readily available in the form of currency. Since cash can be easily…

Q: Evaluating Internal Control of Cash The following procedures were recently installed by Raspberry…

A: Internal control of cash: Internal control is used by the bank to protect its money so that there is…

Q: In testing controls over cash disbursements, an auditor most likely would determine that the person…

A: The question is related to Auditingbof Cash disbursement.

Q: Based on your accounting experience, advanced knowledge and practical experience with concepts…

A: Bank Reconciliation Statement The purpose of preparing the bank reconciliation statement is to…

Q: Which of the following would the auditor consider to be an incompatible operation if the cashier…

A: An auditor seems to be an individual who checks the authenticity of commercial transactions that…

Q: Which is not a key element of internal control over cash receipts? a. daily recording of all cash…

A: Solution- Considering all the small and large business it is not possible to make daily Bank…

Q: The procedures used for over-the-counter receipts are as follows: At the close of each day’s…

A:

Q: Match each of the following cash payment activities to the internal control principle to which…

A: The internal control principles are referred to as all procedures, plans, and controls implemented…

Q: McIntyre Company adheres to a policy of depositing all cash receipts in a bank account and making…

A: (a) Assuming that no errors have occurred during journalizing and posting the unusual balance of the…

Bank Reconciliation Statement

As a commerce student, we all know that every business has to maintain a cash book to maintain all his cash and bank transactions. A cash book is a book which has two columns, one cash column and one bank column.