to the general ledger. Footed the cash book. CASH DISBURSEMENTS: E. Compared cancelled checks with check register for name, signature, payee and endorsement. F. Footed check register G. Traced totals to the general ledger.
The CPAs test of detail transactions included the following auditing procedures which were undertaken for a selected test-month:
CASH RECEIPTS:
- Reconciled credits per bank statement with receipts per book.
- Traced deposits to remittance advices.
- Traced totals to the general ledger.
- Footed the
cash book .
CASH DISBURSEMENTS:
E. Compared cancelled checks with check register for name, signature, payee and endorsement.
F. Footed check register
G. Traced totals to the general ledger.
H. Examined invoices, cash vouchers and other documents supporting disbursements (other than payroll disbursements)
I. Reconciled recorded disbursements with charges per bank statement.
Directions:
Below are presented some of the more common methods of concealing shortages. For each of these items, indicate the letter of the
| No. | Items | ANSWER |
| 1. | Check included in petty cash fund with no intention of cashing. | |
| 2. | Cashed customers' checks made payable to the company. | |
| 3. | Two entries for the same invoice, one in the petty cash on the basis of approved petty cash voucher and one in the regular cash on the basis of the invoice itself. | |
| 4. | Lapping of cash receipts. | |
| 5. | Kiting cash balances. | |
| 6. | Under footing cash receipts record. | |
| 7. | Withholding refunds of overpayment of vendor's invoices. | |
| 8. | Increasing discount column in cash receipts book with a corresponding decrease in cash received column. |
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