Accounting Information Systems
11th Edition
ISBN: 9781337552127
Author: Ulric J. Gelinas, Richard B. Dull, Patrick Wheeler, Mary Callahan Hill
Publisher: Cengage Learning
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Question
Chapter 9, Problem 4P
A)
Summary Introduction
To match: The assertion “Existence or occurrence” with the control goals.
Introduction:
B)
Summary Introduction
To match: The assertion “Completeness” with the control goals.
Introduction:
Accounting Information System (AIS) is said to be the specialized subsystem of the Information System (IS). AIS can be used in the business events for the purpose of collecting, processing, and reporting the financial information.
C)
Summary Introduction
To match: The assertion “Rights and obligations” with the control goals.
Introduction:
Accounting Information System (AIS) is said to be the specialized subsystem of the Information System (IS). AIS can be used in the business events for the purpose of collecting, processing, and reporting the financial information.
D)
Summary Introduction
To match: The assertion “Valuation and allocation” with the control goals.
Introduction:
Accounting Information System (AIS) is said to be the specialized subsystem of the Information System (IS). AIS can be used in the business events for the purpose of collecting, processing, and reporting the financial information.
E)
Summary Introduction
To match: The assertion “Presentation and disclosure” with the control goals.
Introduction:
Accounting Information System (AIS) is said to be the specialized subsystem of the Information System (IS). AIS can be used in the business events for the purpose of collecting, processing, and reporting the financial information.
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Dodge, CPA, is auditing the financial statements of amanufacturing company with a significant amount of trade accounts receivable. Dodgeis satisfied that the accounts are correctly summarized and classified and that allocations,reclassifications, and valuations are made in accordance with GAAP. Dodge is planningto use accounts receivable confirmation requests to obtain sufficient appropriate evidenceas to trade accounts receivable.a. Identify and describe the two forms of accounts receivable confirmation requestsand indicate what factors Dodge will consider in determining when to use each.b. Assume that Dodge has received a satisfactory response to the confirmation requests.Describe how Dodge can evaluate collectibility of the trade accounts receivable.c. What are the implications to a CPA if during an audit of accounts receivable someof a client’s trade customers do not respond to a request for positive confirmation oftheir accounts?d. What auditing steps should a CPA perform if there…
For each of the accounts balances and associated assertions below, select the audit procedure from the list provided that gives the most appropriate audit evidence for the account assertion.
Accounts Balance
Assertion
Procedure
Inventory
Completeness
a. Examine invoices from suppliers.
b. Examine invoices paid after year-end and trace to subsidiary ledger.
c. Select items located in the inventory warehouse and trace to the inventory listing.
d. Trace sales invoices and shipping documents just after year-end to customer accounts.
Cash
Rights and obligations
a. Agree bank statement to the subsidiary ledger.
b. Agree the cash balance per the bank reconciliation to the year-end bank statement.
c. Review the bank confirmation for information on compensating balances.
d. Trace deposits per the bank statement to the cash subsidiary ledger.
Accounts Receivable
Existence
a. Review confirmation of accounts receivable…
1. For each of the following audit procedures, identify A- the type of audit evidence and B- the related audit objective.
a. Ask the accounts payable clerk about procedures for verifying prices, quantities, and extensions on vendors’ invoices –
b. Vouch entries in sales journal to sales invoices and related shipping documents. –
c. Examine the footnotes about the company’s policies for recording revenue transactions to determine whether the disclosures are reasonable
d. Examine expense voucher packages and related vendors’ invoices for approval of expense account classification.
e. Add the sales journal for the month of July and trace amounts to the general ledger
f. Compare the quantities on hand and unit prices on this year’s inventory count sheets with those in the preceding year as a test for large differences.
g. Test the extension of unit prices times quantity on the inventory list for a sample of items, test foot the list, and compare the total to the general ledger.
h. Trace…
Chapter 9 Solutions
Accounting Information Systems
Ch. 9 - Prob. 1RQCh. 9 - Prob. 2RQCh. 9 - How could the control matrix be used to recommend...Ch. 9 - Prob. 4RQCh. 9 - Prob. 5RQCh. 9 - Prob. 6RQCh. 9 - Prob. 7RQCh. 9 - Name and explain four different types of batch...Ch. 9 - Prob. 9RQCh. 9 - Prob. 10RQ
Ch. 9 - Prob. 1DQCh. 9 - Explain why input controls are so important....Ch. 9 - Describe the similarities and differences between...Ch. 9 - Prob. 4DQCh. 9 - Prob. 5DQCh. 9 - Prob. 6DQCh. 9 - Prob. 7DQCh. 9 - Prob. 8DQCh. 9 - Prob. 9DQCh. 9 - Prob. 10DQCh. 9 - Prob. 11DQCh. 9 - The following is a list of six control plans from...Ch. 9 - Prob. 2SPCh. 9 - Figure 9.10 lists 10 control plans from this...Ch. 9 - Prob. 1PCh. 9 - Prob. 2PCh. 9 - Prob. 3PCh. 9 - Prob. 4PCh. 9 - Prob. 5PCh. 9 - Prob. 6P
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