custody

The following internal controls for the acquisition and payment cycle were selected from a standard internal control questionnaire.1. Approved purchase orders are required for all acquisitions of goods.2. Prenumbered receiving reports are prepared as support for acquisitions and numeri-cally accounted for.3. Dates on receiving reports are compared with vendors’ invoices before entry into theacquisitions journal.4. Account classifications are reviewed by someone other than the preparer.5. All supporting documents are cancelled after checks are signed or electronic fundstransfers are approved.6. The authorized signer compares data on supporting documents with checks and elec-tronic funds transfer authorizations.7. Vendors’ invoices are recalculated before payment.8. All checks are signed by the owner or manager.9. Checks are mailed by the owner or manager or a person under her supervision aftersigning. .10. The accounts payable master file is updated, balanced, and reconciled to the…

The following internal controls for the acquisition and payment cycle were selected from a standard internal control questionnaire.1. Approved purchase orders are required for all acquisitions of goods.2. Prenumbered receiving reports are prepared as support for acquisitions and numeri-cally accounted for.3. Dates on receiving reports are compared with vendors’ invoices before entry into theacquisitions journal.4. Account classifications are reviewed by someone other than the preparer.5. All supporting documents are cancelled after checks are signed or electronic fundstransfers are approved.6. The authorized signer compares data on supporting documents with checks and elec-tronic funds transfer authorizations.7. Vendors’ invoices are recalculated before payment.8. All checks are signed by the owner or manager.9. Checks are mailed by the owner or manager or a person under her supervision aftersigning. .10. The accounts payable master file is updated, balanced, and reconciled to the…

Substantive audit procedures Existence/Occurrence(E/O) Rights &obligations(R/O) Completeness(C) Valuation andallocation/Accuracy(V/A) Presentation& disclosure(P/D) a. Inspect securities on handand confirm securitiesheld by custodian.           b. Trace serial numberindicated in the securityto the list of investmentsecurities maintained bythe client           c. The investment securitieslisted on the schedule ofinvestment transactionsof the client aremathematically accurateand agree with thegeneral ledger.           d. Read minutes of meetingof board of directorsregarding investmentsused as collateral forborrowings.           e. Recalculate gains andlosses on sale ofsecurities.           f. Recalculate interest anddividend revenues.           g. Inspect securitiessimultaneously with countof other liquid assets.           h. Verify fair values ofsecurities with publishedprice quotations.           i. Obtain an understandingon management’s processin classifying…

Tests of controls in a GAAS audit are used for O Applying analytical procedures to financial statement balances Obtaining evidence about the financial statement assertions O Accomplishing control over the occurrence of recorded transactions O Obtaining evidence about the operating effectiveness of client control activities

E2B. Some conditions for internal control follow. a. Transactions are executed in accordance with management's general or specific authorization. b. Transactions are recorded as necessary to permit preparation of financial statements and maintain accountability for assets. c. Access to assets is permitted only as allowed by management. d. At reasonable intervals, the records of assets are compared with the existing assets. David Pinto, who operates a small grocery store, has established the following policies with regard to the checkout cashiers: 1. Each cashier has his or her own cash drawer, to which no one else has access. 2. Cashiers may accept checks for purchases under $50 with proper identification. For checks over $50, they must receive approval from Pinto. 3. Every sale must be rung up on the cash register and a receipt given to the customer. Each sale is recorded on a tape inside the cash register. 4. At the end of each day, Pinto counts the cash in the drawer and compares it…

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When an entity uses a trust company as custodian of its marketable securities, the possibility of concealing fraud most likely would be reduced if thea. Trust company has no direct contact with the entity employees responsible for maintaining investment accounting records.b. Securities are registered in the name of the trust company rather than the entity itself.c. Interest and dividend checks are mailed directly to an entity employee who is authorized to sell securities.d. The trust company places the securities in a bank safe deposit vault under the custodian’s exclusive control.

The issue of security througha number of processes .once the SEC has commented to interest on the registration statement and a preliminary prospectus has been distributed to interest invetors,the investment bankers organizeroad shows and undertake book building in the process.                     Required: Explain the meaning and two [2]purposes of road showa as used in the preamble above.

Current Attempt in Progress Select the correct items that match the description. 1. Segregation of duties. Payee 2. One to whom a cheque is payable. Cash registers, garment sensors, and burglar alarms are examples Custody of an asset should be kept separate from the record-keeping for that asset Two or more employees circumventing 3. NSF cheques prescribed procedures. Collusion Prevent a transaction from being Cash equivalents 4. recorded more than once. Pre-numbered documents Bonding employees Cheques that have been returned by 5. the maker's bank for lack of funds. Bank service charge Petty cash receipt 6. Physical control device. Outstanding cheques Maker 7. One who issues a cheque. Insurance protection against misappropriation of assets. 8. Document indicating the purpose of a petty cash expenditure. 9. 10. Bank charge for the use of its services. Issued cheques that have not been paid by the bank. 11. 12. Highly liquid investments.

Which of the following control activities would best protect against the preparation ofimproper or inaccurate cash disbursements?a. All checks must be signed by an officer designated by the board of directors.b. All signed checks must be reviewed and compared with supporting documentation by thetreasurer before mailing.c. All checks must be sequentially numbered and accounted for by internal auditors.d. All checks must be perforated or otherwise effectively canceled when they are returnedwith the bank statement.

Analyze the state of the company's current financial controls. Use Posey’s Pet Emporium Accounts Payable Policies and Procedures and Accounts Payable Ledgers and Journals found in the Supporting Materials section. Include any internal or external controls found in the guide. Identify inconsistencies and anomalies in controls. Include the following details in your response: Identify any discrepancies in the controls. Identify numbers that appear irregular (red flags).

Which of the following audit procedures is aimed most directly at testing the completeness assertion for accounts payable?     Footing the list of accounts payable.     Tracing shipping reports after year-end to related customer purchase orders and invoices.     Examining underlying documentation for cash disbursements in the period after year-end.     Tracing shipping reports issued on or before year-end to related customer purchase orders and invoices.

Some conditions for internal control follow.a. Transactions are executed in accordance with management’s general or specific authorization.b. Transactions are recorded as necessary to permit preparation of financial statements and maintain accountability for assets.c. Access to assets is permitted only as allowed by management.d. At reasonable intervals, the records of assets are compared with the existing assets. David Pinto, who operates a small grocery store, has established the following policieswith regard to the checkout cashiers:1. Each cashier has his or her own cash drawer, to which no one else has access.2. Cashiers may accept checks for purchases under $50 with proper identification. For checks over $50, they must receive approval from Pinto.3. Every sale must be rung up on the cash register and a receipt given to the customer. Each sale is recorded on a tape inside the cash register.4. At the end of each day, Pinto counts the cash in the drawer and compares it with the…

which of the following account will be least likely involved in the purhasing sub-process of the purchasing and disbursement cycle? a. proper authorization of purchases b. timely recording of transactions including independent review c. proper authorization of disbursements d. segragration of duties between the credit department and custody