Outline and explain the steps that you would use to properly audit the account "Cash". BeBeach (Va) plus many safe deposit boxes both in the banks and on the premises.You are in charge of auditing the "Cash" account of a large multinational company havingof $11,000,000 spread among 12 bank accounts between Williamsburg (Va) to VirginiaO Exislence t oceurenceIII -precise and specific.CompletenessBonprtroses cut-offrights(5valuation racurayPrcsentanun t disciosure

Audit assertions refers to the set of the representations through management team that would be…

utline and explain the steps that you would use to properly audit the accou in charge of auditing the "Cash" account of a large multinational com O Exislence + occarence each (Va) plus many safe deposit boxes both in the banks and on the premi= O stores in the Tidewater area. On December 31, 2021, its balance sheet sho E$11,000,000 spread among 12 bank accounts between Williamsburg (Va ecise and specific. Atareroen Completeness OonpERopAS cut-off (4) rights racuray

utline and explain the steps that you would use to properly audit the accou in charge of auditing the "Cash" account of a large multinational com O Exislence + occarence each (Va) plus many safe deposit boxes both in the banks and on the premi= O stores in the Tidewater area. On December 31, 2021, its balance sheet sho E$11,000,000 spread among 12 bank accounts between Williamsburg (Va ecise and specific. Atareroen Completeness OonpERopAS cut-off (4) rights racuray

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter10: Auditing Cash, Marketable Securities, And Complex Financial Instruments

Section: Chapter Questions

Problem 16RQSC

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Similar questions

For each of the following, indicate if the statement reflects an input component, output component, or storage component of the accounting information system for a bank. A. Online customer check ordering system. B. Approved loan applications. C. Report of customers with savings accounts over $5,000. D. Desktop hard drive on computer used by bank presidents administrative assistant. E. List of the amount of money withdrawn from all of the banks ATMs on a given day.
Brylle is one of the auditors of Alejandria Corporation (AC). He was assigned to test the controls over the cash of Alejandria. The accountant of AC prepares monthly bank reconciliation through the use of Microsoft Excel. Brylle wanted to know if the final amounts in the bank reconciliation are correct.
In relation to your audit of the cash in bank of your client, Meg Company, the following information were gathered: • As of May 31, 2016, the book balance is P20,000 and the bank balance is P18,000.• The deposit in transit for May is P10,000; for June, P15,000.• The outstanding checks for May amount to P2,000 and the outstanding checks for June total to P5,000.• Credit memo for May pertain to a collection for a note totalling to P8,000; while for June, the credit memo is P30,000 pertaining to a bankloan.• Debit memos total to P500 for May and P2,000 for June.• A May book disbursement for P1,500 was not recorded. The correction was made in June.• A June collection for P4,500 was not recorded. No correction was made.• Bank errors for June are as follows: a deposit of P10,200 made by the entity was erroneously omitted; and a disbursement made by yourclient for P3,000 was erroneously debited to the account of MIG Company. No corrections were made during the month.• June book debits –…
In relation to your audit of the cash in bank of your client, Meg Company, the following information were gathered: • As of May 31, 2016, the book balance is P20,000 and the bank balance is P18,000.• The deposit in transit for May is P10,000; for June, P15,000.• The outstanding checks for May amount to P2,000 and the outstanding checks for June total to P5,000.• Credit memo for May pertain to a collection for a note totalling to P8,000; while for June, the credit memo is P30,000 pertaining to a bankloan.• Debit memos total to P500 for May and P2,000 for June.• A May book disbursement for P1,500 was not recorded. The correction was made in June.• A June collection for P4,500 was not recorded. No correction was made.• Bank errors for June are as follows: a deposit of P10,200 made by the entity was erroneously omitted; and a disbursement made by yourclient for P3,000 was erroneously debited to the account of MIG Company. No corrections were made during the month.• June book debits –…
In relation to your audit of the cash in bank of your client, MEG Company, the following information were gathered: As of May 31, 2016, the book balance is P20,000 and the bank balance is P18,000. The deposit in transit for May is P10,000; for June, P15,000. The outstanding checks for May amount to P2,000 and the outstanding checks for June total to P5,000. Credit memo for May pertain to a collection for a note totalling to P8,000; while for June, the credit memo is P30,000 pertaining to a bank loan. Debit memos total to P500 for May and P2,000 for June. A May book disbursement for P1,500 was not recorded. The correction was made in June. A June collection for P4,500 was not recorded. No correction was made. Bank errors for June are as follows: a deposit of P10,200 made by the entity was erroneously omitted; and a disbursement made by your client for P3,000 was erroneously debited to the account of MIG Company. No corrections were made during the month. June book debits – P150,000;…
In relation to your audit of the cash in bank of your client, Meg Company, the following information were gathered: • As of May 31, 2016, the book balance is P20,000 and the bank balance is P18,000.• The deposit in transit for May is P10,000; for June, P15,000.• The outstanding checks for May amount to P2,000 and the outstanding checks for June total to P5,000.• Credit memo for May pertain to a collection for a note totalling to P8,000; while for June, the credit memo is P30,000 pertaining to a bankloan.• Debit memos total to P500 for May and P2,000 for June.• A May book disbursement for P1,500 was not recorded. The correction was made in June.• A June collection for P4,500 was not recorded. No correction was made.• Bank errors for June are as follows: a deposit of P10,200 made by the entity was erroneously omitted; and a disbursement made by yourclient for P3,000 was erroneously debited to the account of MIG Company. No corrections were made during the month.• June book debits –…
In relation to your audit of the cash in bank of your client, MEG Company, the following information were gathered: As of May 31, 2016, the book balance is P20,000 and the bank balance is P18,000. The deposit in transit for May is P10,000; for June, P15,000. The outstanding checks for May amount to P2,000 and the outstanding checks for June total to P5,000. Credit memo for May pertain to a collection for a note totalling to P8,000; while for June, the credit memo is P30,000 pertaining to a bank loan. Debit memos total to P500 for May and P2,000 for June. A May book disbursement for P1,500 was not recorded. The correction was made in June. A June collection for P4,500 was not recorded. No correction was made. Bank errors for June are as follows: a deposit of P10,200 made by the entity was erroneously omitted; and a disbursement made by your client for P3,000 was erroneously debited to the account of MIG Company. No corrections were made during the month. June book debits – P150,000;…
a. Indicate whether each procedure, given below, is a test of control, substantive test of transactions, substantive analytical procedure, or a test of details of balances. b. Identify the type of evidence for each procedure. The following are 11 audit procedures taken from an audit program: 1. Discuss the duties of the cash disbursements clerk with him and observe whether he has responsibility for handling cash or preparing the bank reconciliation. 2. Examine vendors’ invoices and other supporting documents to determine whether large amounts in the repair and maintenance account should be capitalized. 3. Inquire about the accounts payable supervisor’s monthly review of a computer-generated exception report of receiving reports and purchase orders that have not been matched with a vendor invoice. 4. Foot the accounts payable trial balance and compare the total with the general ledger. 5. Confirm accounts payable balances directly with vendors. 6. Account for a sequence of checks in the…
You are auditing the Digos People’s Cooperative with a substantial annual sales, all of which are billed and collected locally. During your preliminary review of internal control, you discover the following procedures for handling cash receipts: Cash collections on over-the-counter and COD sales are received by the cashier from the customer or from the delivery service. Upon receiving cash, the cashier stamps the sales ticket “paid” and files a copy. The only record of COD sales is a copy of the sales ticket, which is given to the cashier to hold until cash is received from the delivery service. Mail is opened by the credit manager’s secretary, and remittances are given to the credit manager for review. The credit manager then places the remittances in a try on the cashier’s desk. At the time of the daily deposit – called “deposit cutoff time” – the cashier delivers the checks and currencies to the assistant credit manager, who prepares remittance lists and the bank deposit, and…
In your audit of Ginko Company, you have received a cash confirmation and a cutoff statement from the bank on Ginko’s one bank account. Prepare a list of substantive procedures for Ginko’s cash
The owner of Zeke's Landscaping Designs just hired an office manager to handle all the office functions for him. Among other responsibilities, the office manager will handle key accounting functions such as processing customer payments, writing cheques to employees to pay the payroll, handle daily bank deposits at the bank pay suppliers, and reconcile the company bank account bank reconciliations. What internal cash control practice is being overlooked by the owner? Multiple Choice A Making daily cash deposits B Frequent preparation of bank reconciliations C Separation of cash payment from cash disbursement function D Ensuring all cash disbursements are tracked by making payments by cheque E Performing external audit
APPLIED AUDITING Analyze and compute the appropriate answers for the following : (Provide the pertinent solutions to determine your correct answers. You have gathered the following data in the preparation of bank reconciliation on December 31, of the current year for AM Company: a. Balance per Bank Statement P 2,000,000 b. Balance per Book P 1,350,000 c. Bank service charge P 5,000 d. Outstanding checks P 300,000 e. Deposit in Transit P 237,500 f. Proceeds of bank loan, December 1, discounted 6 months at 12%, not recorded in AM Company’s books P 470,000 g. Customer’s NSF check charged back by bank P 25,000 h. Check of Rich Company charged by the bank against AM Company account P 75,000 i.…