Selection of Effective Extended Procedures. The following lettered items are some “suspicions,” and you have been requested to select some effective procedures designed to confirmor repudiate the suspicions.a. The custodian of the petty cash fund may be removing cash on Friday afternoon to payfor weekend activities.b. A manager noticed that eight new vendors had been added to the purchasing department’s approved list after the assistant purchasing agent was promoted to purchasingmanager three weeks ago. The manager suspects all or some of them might be fictitiouscompanies set up by the new purchasing manager.c. The payroll supervisor may be stealing unclaimed paychecks of people who quit workand do not pick up the last check.d. Although no customers have complained, cash collections on accounts receivable aredown. The counter clerks may have stolen customers’ payments.e. The cashier may have “borrowed” money, covered it by holding each day’s deposit untilcash from the next day(s)’s collection is enough to make up the shortage from an earlierday, and then send the deposit to the bank.Required:Write the suggested procedures for each case in definite terms so another person will knowwhat to do
Selection of Effective Extended Procedures. The following lettered items are some “suspicions,” and you have been requested to select some effective procedures designed to confirmor repudiate the suspicions.a. The custodian of the petty cash fund may be removing cash on Friday afternoon to payfor weekend activities.b. A manager noticed that eight new vendors had been added to the purchasing department’s approved list after the assistant purchasing agent was promoted to purchasingmanager three weeks ago. The manager suspects all or some of them might be fictitiouscompanies set up by the new purchasing manager.c. The payroll supervisor may be stealing unclaimed paychecks of people who quit workand do not pick up the last check.d. Although no customers have complained, cash collections on accounts receivable aredown. The counter clerks may have stolen customers’ payments.e. The cashier may have “borrowed” money, covered it by holding each day’s deposit untilcash from the next day(s)’s collection is enough to make up the shortage from an earlierday, and then send the deposit to the bank.Required:Write the suggested procedures for each case in definite terms so another person will knowwhat to do
Selection of Effective Extended Procedures. The following lettered items are some “suspicions,” and you have been requested to select some effective procedures designed to confirmor repudiate the suspicions.a. The custodian of the petty cash fund may be removing cash on Friday afternoon to payfor weekend activities.b. A manager noticed that eight new vendors had been added to the purchasing department’s approved list after the assistant purchasing agent was promoted to purchasingmanager three weeks ago. The manager suspects all or some of them might be fictitiouscompanies set up by the new purchasing manager.c. The payroll supervisor may be stealing unclaimed paychecks of people who quit workand do not pick up the last check.d. Although no customers have complained, cash collections on accounts receivable aredown. The counter clerks may have stolen customers’ payments.e. The cashier may have “borrowed” money, covered it by holding each day’s deposit untilcash from the next day(s)’s collection is enough to make up the shortage from an earlierday, and then send the deposit to the bank.Required:Write the suggested procedures for each case in definite terms so another person will knowwhat to do
Selection of Effective Extended Procedures. The following lettered items are some “suspicions,” and you have been requested to select some effective procedures designed to confirm or repudiate the suspicions. a. The custodian of the petty cash fund may be removing cash on Friday afternoon to pay for weekend activities. b. A manager noticed that eight new vendors had been added to the purchasing department’s approved list after the assistant purchasing agent was promoted to purchasing manager three weeks ago. The manager suspects all or some of them might be fictitious companies set up by the new purchasing manager. c. The payroll supervisor may be stealing unclaimed paychecks of people who quit work and do not pick up the last check. d. Although no customers have complained, cash collections on accounts receivable are down. The counter clerks may have stolen customers’ payments. e. The cashier may have “borrowed” money, covered it by holding each day’s deposit until cash from the next day(s)’s collection is enough to make up the shortage from an earlier day, and then send the deposit to the bank. Required: Write the suggested procedures for each case in definite terms so another person will know what to do
Definition Definition Money that the business will be receiving from its clients who have utilized the credit provided to buy its goods and services. The credit period typically lasts for a short term, lasting from a few days, a few months, to a year.
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