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Please answer exercise 4-1. Thank you!

Please answer exercise 4-1. Thank you!

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Please answer exercise 4-1. Thank you! 

Exercises For each of the following controls, identify whether the control leaves an audit trail. Also identify a test of control audit procedure the auditor can use to test the effectiveness of the control. 4-1. An accounting clerk accounts for all shipping documents on a monthly basis and initials the monthly shipping log. a. b. Bank reconciliations are prepared by the controller, who does not have access to cash receipts. c. As employees check in daily by using time clocks, a supervisor observes to make certain that no individual "punches in" more than с. one time card. d. Vendors' invoices are approved by the controller after she examines the purchase order and receiving report attached to each invoice. e. The cashier, who has n access to accounting records, prepares the deposit slip and delivers the deposit directly to the daily. е. f. An accounting clerk verifies the price, extensions, and footing of all sales invoices in excess of P300 and initials the duplicate sales invoice when he has completed the procedure. g. All mail is opened and cash is prelisted daily by the president's secretary, who has no other responsibility for handling assets or recording accounting data.
Transcribed Image Text:Exercises For each of the following controls, identify whether the control leaves an audit trail. Also identify a test of control audit procedure the auditor can use to test the effectiveness of the control. 4-1. An accounting clerk accounts for all shipping documents on a monthly basis and initials the monthly shipping log. a. b. Bank reconciliations are prepared by the controller, who does not have access to cash receipts. c. As employees check in daily by using time clocks, a supervisor observes to make certain that no individual "punches in" more than с. one time card. d. Vendors' invoices are approved by the controller after she examines the purchase order and receiving report attached to each invoice. e. The cashier, who has n access to accounting records, prepares the deposit slip and delivers the deposit directly to the daily. е. f. An accounting clerk verifies the price, extensions, and footing of all sales invoices in excess of P300 and initials the duplicate sales invoice when he has completed the procedure. g. All mail is opened and cash is prelisted daily by the president's secretary, who has no other responsibility for handling assets or recording accounting data.
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