The following are 5 audit procedures taken from an audit program: 1. Conduct cash count for the petty cash kept in office to verify the amount counted by the accountant.e 2. Select samples of payroll records and compute the overtime payment. 3. Observe the endorsement of incoming checks by the accountant. 4. Interview the sales manager and the credit manager to understand if there is a segregation of duties between the credit-granting function and the sales function. 5. Divide individual manufacturing expenses by total manufacturing expenses and compare the results with those in previous years to check for unusual fluctuations. Required: Identify the type of evidence for each procedure using the following table: inspection of asset, confirmation, inspection of documents, analytical procedures, inquiries, recalculation, reperformance, and observation. Audit Procedures 4 Type of evidence (list out the item numbers)

The following are 5 audit procedures taken from an audit program: 1. Conduct cash count for the petty cash kept in office to verify the amount counted by the accountant.e 2. Select samples of payroll records and compute the overtime payment. 3. Observe the endorsement of incoming checks by the accountant. 4. Interview the sales manager and the credit manager to understand if there is a segregation of duties between the credit-granting function and the sales function. 5. Divide individual manufacturing expenses by total manufacturing expenses and compare the results with those in previous years to check for unusual fluctuations. Required: Identify the type of evidence for each procedure using the following table: inspection of asset, confirmation, inspection of documents, analytical procedures, inquiries, recalculation, reperformance, and observation. Audit Procedures 4 Type of evidence (list out the item numbers)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

1) Why is Responsibility Accounting necessary and how is it implemented? 2) Determination of control risk in the HR cycle (personnel) include an example of the explanation you gave? 3) To design an audit program for testing controls, what stages must the auditor go through when auditing a banking service company?
Which internal control activity is being violated when the cashier in a retail store also records the daily receipts in a journal? adequate documents and records safeguards over assets and records independent checks on recorded amounts segregation of duties
An IT auditor is conducting data analysis procedures on an employee expense report file and notices several expenses for $24.99 from the same individual. The company’s policy requires that any expenses that are under $25.00 do not require a receipt. The IT auditor should: [SELECT ALL THAT APPLY a) Maintain professional skepticism and investigate these transactions further b) Pass on investigating these items further, focusing on higher dollar amounts c) Evaluate the business process approval controls, and related procedures d) Discuss fraud awareness and detection programs with management to gain an understanding of management’s commitment to fraud prevention and related entity-level anti-fraud controls.
Able, an accounts payable supervisor for ABC Company, bought supplies for a company he owned on the side. Able entered vouchers in ABC Company’s accounts payable system for the cost of the supplies. Checks were cut to pay for these unauthorized expenses during normal daily check runs. The goods ordered were drop-shipped to a location where Able could collect them. This is an example of: a. An expense reimbursement scheme b. A commission scheme c. A billing scheme d. An invoice kickback scheme
Overview For this assignment, you will represent a company that does not currently have an accounting information system (AIS) established. Make sure you clearly identify the business line, product type, and market position. Read this article before you begin: Identifying the Absence of Effective Internal Controls: An Alternative Approach for Internal Control Audits. Instructions Write a 3-4-page paper in which you: Identify at least four different areas where there could be potential accounting fraud in a company. Make sure you elaborate on your reasoning for why accounting fraud could occur as well as the financial implications on the organization. Design a method of detection and a method of limiting the possible financial fraud. Provide support for your arguments and rationale using support from your text and supplemental readings. Provide support for arguments and rationale using AIS knowledge and recent AIS literature. Draft a one-page recommendation at the end of the document…
i need the answer quickly
6. In which of the following situations does the internal auditor potentially lack objectivity? a. A payroll accounting employee assists an internal auditor in verifying the physical inventory of small motors. b. An internal auditor discusses a significant issue with the vice president to whom the auditee reports prior to drafting the audit report. c. An internal auditor recommends standards of control and performance measures for a contract with a service organization for the processing of payroll and employee benefits. d. A former purchasing assistant performs a review of internal controls over purchasing four months after being transferred to the internal audit department.
Segregation of Functions Comment on the specific risks (if any) that are caused by the following combination of tasks. A) A sales manager, who works on commission based on gross sales, approves credit and has the authority to write off uncollectible accounts. B) The warehouse clerk, who has custodial responsibility over inventory in the warehouse, updates the inventory subsidiary ledger and prepares an inventory summary for the general ledger department. C). The billing clerk bills customers and records sales in the sales journal. D). The shop foreman approves and submits time cards to timekeeping and distributes paychecks to employees. E) The accounting clerk posts to individual accounts receivable subsidiary accounts and performs the reconciliation of the subsidiary ledger and the GL control account.