EP AUDITING+ASSURANCE...-MYACCT.LAB
16th Edition
ISBN: 9780134148656
Author: ARENS
Publisher: PEARSON CO
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Chapter 12, Problem 32DQP
a.
To determine
State for all the situations whether the control is an automated application control embedded in computer software, manual control with effectiveness based significantly on IT-generated information or a manual control with effectiveness not significantly reliant on IT-generated information.
b.
To determine
Explain the way through which the extent of testing of each control will get affected in subsequent years, if the general controls get affected and controls over program and master file changes.
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The purchasing agent receives an inventory status report on his computer terminal from the inventory control application, which identifies the items that need to be reordered. The agent selects the suppliers and enters this information into the computer terminal to create a digital purchase order. He then prints and sends a copy of the PO to the supplier.
When the goods are received directly into the warehouse, the warehouse manager counts and inspects them. The manager then creates a digital receiving report and updates the inventory subsidiary ledger from the warehouse terminal.
A few days later, the supplier sends an invoice to the AP clerk who reconciles it with the digital copy of the receiving report. From her computer terminal, the clerk records the purchase in the purchases journal and records the liability by adding a record to the AP subsidiary ledger and assigning a due date.
Each day, the cash disbursement clerk visually searches the AP subsidiary ledger from her terminal…
The purchasing agent receives an inventory status report on his computer terminal from the inventory control application, which identifies the items that need to be reordered. The agent selects the suppliers and enters this information into the computer terminal to create a digital purchase order. He then prints and sends a copy of the PO to the supplier.When the goods are received directly into the warehouse, the warehouse manager counts and inspects them. The manager then creates a digital receiving report and updates the inventory subsidiary ledger from the warehouse terminal.A few days later, the supplier sends an invoice to the AP clerk who reconciles it with the digital copy of the receiving report. From her computer terminal, the clerk records the purchase in the purchases journal and records the liability by adding a record to the AP subsidiary ledger and assigning a due date.Each day, the cash disbursement clerk visually searches the AP subsidiary ledger from her terminal for…
The following describes the expenditure cycle manual procedures for a hypothetical company.The inventory control clerk examines the inventory records for items that must be replenished andprepares a two-part purchase requisition. Copy 1 ofthe requisition is sent to the purchasing department,and Copy 2 is filed.Upon receipt of the requisition, the purchasingclerk selects a supplier from the valid vendor file (reference file) and prepares a three-part purchase order.Copy 1 is sent to the supplier, Copy 2 is sent to theAP department where it is filed temporarily, andCopy 3 is filed in the purchasing department.A few days after the supplier ships the order, thegoods arrive at the receiving department. They areinspected, and the receiving clerk prepares a threepart receiving report describing the number andquality of the items received. Copy 1 of the receivingreport accompanies the goods to the stores, wherethey are secured. Copy 2 is sent to inventory control,where the clerk posts it to…
Chapter 12 Solutions
EP AUDITING+ASSURANCE...-MYACCT.LAB
Ch. 12 - Prob. 1RQCh. 12 - Prob. 2RQCh. 12 - Prob. 3RQCh. 12 - Describe how the nature of evidence used to...Ch. 12 - Prob. 5RQCh. 12 - Prob. 6RQCh. 12 - Prob. 7RQCh. 12 - Prob. 8RQCh. 12 - Prob. 9RQCh. 12 - Prob. 10RQ
Ch. 12 - Prob. 11RQCh. 12 - Prob. 12RQCh. 12 - Prob. 13RQCh. 12 - Prob. 14RQCh. 12 - Prob. 15RQCh. 12 - Prob. 16.1MCQCh. 12 - Prob. 16.2MCQCh. 12 - Prob. 16.3MCQCh. 12 - Prob. 17.1MCQCh. 12 - Prob. 17.2MCQCh. 12 - Prob. 17.3MCQCh. 12 - Prob. 18.1MCQCh. 12 - Prob. 18.2MCQCh. 12 - Prob. 18.3MCQCh. 12 - Prob. 19.1MCQCh. 12 - Prob. 19.2MCQCh. 12 - Prob. 19.3MCQCh. 12 - Prob. 20DQPCh. 12 - Prob. 21DQPCh. 12 - Prob. 22DQPCh. 12 - Prob. 23DQPCh. 12 - Prob. 24DQPCh. 12 - Prob. 25DQPCh. 12 - Prob. 26DQPCh. 12 - Prob. 27DQPCh. 12 - A CPAs client, Boos Baumkirchner, Inc., is a...Ch. 12 - Prob. 29DQPCh. 12 - Prob. 30DQPCh. 12 - Based on a cost-benefit analysis, management at...Ch. 12 - Prob. 32DQP
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