State the transaction-related audit objective for the verification of cash receipts. Also, list one internal control which can be used by the client to decrease the likelihood of misstatements.

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Answer 1

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Definition Definition Financial journal in which only cash-related transactions are recorded. Cash transactions are posted chronologically in the cash book, which is also called a subsidiary book. All the cash receipts are recorded on the debit side and all the cash payments are recorded on the credit side. An important point to remember is that the cash book never shows a credit balance; only a debit balance is shown in the cash book.

Chapter 14, Problem 12RQ

To determine

State the transaction-related audit objective for the verification of cash receipts. Also, list one internal control which can be used by the client to decrease the likelihood of misstatements.

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List the transaction-related audit objectives for the verificationof cash receipts. For each objective, state one internal control that the client can use toreduce the likelihood of misstatements.

Consider the following internal controls associated with an evaluated receipts process. For each control, identify the assertion for which the control is designed to prevent, or detect and correct misstatements. a. b. C. d. e. f. g. h. Software generates a daily report comparing the daily total in the cash disbursements journal with the total of payables submitted to the third-party payment processor for payment, and discrepancies are reported. Software generates a daily report of any discrepancies between the vendor accounting coding and general ledger accounts coding, which is compared with the purchase order and purchase requisition. Software generates a daily report of any discrepancies between the recorded payable and quantities on the receiving report. Once a receiving report is matched with a purchase, it cannot be matched with another purchase. Software generates a daily report of receiving reports that have not been matched one-for-one with the recording of a purchase and a…

Identify important internal control activities present in a properly designed system to mitigate the risk of material misstatements for each relevant assertion related to cash and to help prevent or detect employee fraud.

Answer 2

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Definition Definition Financial journal in which only cash-related transactions are recorded. Cash transactions are posted chronologically in the cash book, which is also called a subsidiary book. All the cash receipts are recorded on the debit side and all the cash payments are recorded on the credit side. An important point to remember is that the cash book never shows a credit balance; only a debit balance is shown in the cash book.

Chapter 14, Problem 12RQ

To determine

State the transaction-related audit objective for the verification of cash receipts. Also, list one internal control which can be used by the client to decrease the likelihood of misstatements.

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Answer 3

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Definition Definition Financial journal in which only cash-related transactions are recorded. Cash transactions are posted chronologically in the cash book, which is also called a subsidiary book. All the cash receipts are recorded on the debit side and all the cash payments are recorded on the credit side. An important point to remember is that the cash book never shows a credit balance; only a debit balance is shown in the cash book.

Chapter 14, Problem 12RQ

To determine

State the transaction-related audit objective for the verification of cash receipts. Also, list one internal control which can be used by the client to decrease the likelihood of misstatements.

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Answer 4

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Definition Definition Financial journal in which only cash-related transactions are recorded. Cash transactions are posted chronologically in the cash book, which is also called a subsidiary book. All the cash receipts are recorded on the debit side and all the cash payments are recorded on the credit side. An important point to remember is that the cash book never shows a credit balance; only a debit balance is shown in the cash book.

Chapter 14, Problem 12RQ

To determine

State the transaction-related audit objective for the verification of cash receipts. Also, list one internal control which can be used by the client to decrease the likelihood of misstatements.

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Answer 5

Chapter 14, Problem 12RQ

To determine

State the transaction-related audit objective for the verification of cash receipts. Also, list one internal control which can be used by the client to decrease the likelihood of misstatements.

Answer 6

Chapter 14, Problem 12RQ

To determine

State the transaction-related audit objective for the verification of cash receipts. Also, list one internal control which can be used by the client to decrease the likelihood of misstatements.

Answer 7

Chapter 14, Problem 12RQ

To determine

State the transaction-related audit objective for the verification of cash receipts. Also, list one internal control which can be used by the client to decrease the likelihood of misstatements.

Answer 8

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Answer 9

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Answer 11

Ch. 14 - Describe the following documents and records and...Ch. 14 - Prob. 2RQ Ch. 14 - Prob. 3RQ Ch. 14 - Prob. 4RQ Ch. 14 - Prob. 5RQ Ch. 14 - Prob. 6RQ Ch. 14 - Prob. 7RQ Ch. 14 - Prob. 8RQ Ch. 14 - Prob. 9RQ Ch. 14 - Prob. 10RQ

State the transaction-related audit objective for the verification of cash receipts. Also, list one internal control which can be used by the client to decrease the likelihood of misstatements.

Solution Summary: The author states the transaction-related audit objective for the verification of cash receipts and one internal control which can be used by the client to decrease the likelihood of misstatements.

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State the transaction-related audit objective for the verification of cash receipts. Also, list one internal control which can be used by the client to decrease the likelihood of misstatements.

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