Extra observance by the internal auditor is given to payroll to maintain integrity in the transfer of funds to the general account to cover payroll expense. Payroll is authorized and collected through a time clock and authorized by supervisors. Personnel approve all new hires and payroll changes. After funds have been transferred from the general account to the employees’ account by electronic fund transfer, Mary Costain, the treasurer, compares the payroll register with the transfer
The year-end bank reconciliations are usually extensive audit and using analytical procedures are test for reasonableness of cash balances. Auditor will compare ending balances on bank reconciliation, deposits, any outstanding checks, and other reconciliation items. In order to audit any cash in the bank, the
When the invoice is submitted the e-mail database must have enough memory to support the constant e-mails. If this is a credit sale, the invoicing department must forward the approval, along with the report to the compliance/accounting department. The accounting department has more access; because each item needs to be verified by them and they also need to verify the credit report is viable. Once they are finishing testing the invoice, they need to comment on the database that the certain individual tested this invoice and it is compliant or noncompliant. There should also be a brief explanation explaining why the transaction is what they deem it
They send a notice to customers who have returned checks. The notice is generated by your program and includes the bank account number, account holder’s name, number of returned checks, and the total returned check fee. The management team at your bank knows you are a professional and understands the program you deliver to them will include comments to document what is happening and proper labels for all the
These procedures will be similar to the ones utilized in the other cycles. First, the audit engagement team will understand the internal controls to formulate the audit objectives of occurrence, completeness, accuracy, and timing. Second, the team will design tests of controls and substantive tests of transactions to meet those objectives (Arens, Elder, & Beasley, 2014). The following question will address the objective of the audit with examinations of test of controls and substantive tests of transactions: Objective Questions Test of Controls Substantive Test of Transactions Is there proper authorization for the issues of new notes Review note agreements for board of directors and executive management signatures. Review cash receipts and disbursements for large changes or unusual amounts All notes are recorded?
The external source documentation can serve as the confirmation of the internal documentation. 7-28 1. Review the accounts receivable with the credit manager to evaluate their collectability. Inquiries of the client. 2. Compare a duplicate sales invoice with the sales journal for customer name and amount.
6. Customer receives products from the store in exchange for money 2 a) List the specific items of information that are usually gathered at the POS (Point of Sale terminal or cash register) and recorded when a customer checks out (excluding obtaining the identity of the customer which is covered in Q3)? Transactional Information * Transaction number * POS transaction ID * Payment method (credit/debit/cash) * Purchase date and time * Purchase receipt Product Information * Kind of product (Apparel/Equipment) * Size of the Apparel * ID of the product * Price of the product * Brand of the product Staff Information * Name of vendor * Vendor ID * Rank of the staff member * Department that the staff member is allocated to b) What are two important uses of this information at the store by the technician and by headquarters management – a total of four uses? (use a table) (It is important that you give different responses/uses for store manager and HQ) Uses of Information by Store Manager | Uses of Information by Management at HQ | * Depending on the product information the store manager is able to identify which products are sold more often and which are remaining in inventory. This
Find the difference 3. Cutoff Each cash receipt should be entered in the cash Trace recorded cash receipts at the end of receipts journal the day it arrived. Cash receipts Financial statements period and at the cutoff should be internally verified. beginning of the next period to bank deposits on the bank statement 4. Realizable value Cash receipts records should be internally verified Evaluate whether the allowance is adequate With Prelisting of cash receipts including consideration of the
Prepare a simple balance sheet of assets and liabilities for the bank immediately after the deposit is received. b. Assume Bank A makes a loan in the amount that can be “safely lent.” Show what the bank’s balance sheet of assets and liabilities would look like immediately after the loan. c. Assume that a check in the amount of the “derivative deposit” created in Part b was written and sent to another bank. Show what Bank A’s (the lending bank’s) balance sheet of assets and liabilities would look like after the check is written.