William Jackson, the CEO of RPL, has requested that the tests of controls only be performed once due to the disruption caused by audit staff to the work of the staff in the printing and shipping department. In addition, he has requested that the tests of controls occur only during July 2018, as this is traditionally the quietest time of the year for RPL. You expect the audit report to be signed on 15 August 2018. a) For each of the manual and IT application control activities identified, design an appropriate audit procedure to test that control. Accounting system automatically stops the order for any publishers who have exceeded their credit terms and limits IT application control. When an order exceeds the credit limit, an authorisation from both the heads of publishing and accounts is required for the transaction to proceed manual control. The accounts receivable clerk checks the prices and arithmetic accuracy of the invoices and signs the invoice as evidence of her check. The cashier reconciles the total of the batch postings to accounts receivable to the amount banked for the day. The assistant accountant prepares a bank reconciliation each month Segregation of duties between accounts receivable and cash handling functions
William Jackson, the CEO of RPL, has requested that the tests of controls only be performed once due to the disruption caused by audit staff to the work of the staff in the printing and shipping department. In addition, he has requested that the tests of controls occur only during July 2018, as this is traditionally the quietest time of the year for RPL. You expect the audit report to be signed on 15 August 2018. a) For each of the manual and IT application control activities identified, design an appropriate audit procedure to test that control. Accounting system automatically stops the order for any publishers who have exceeded their credit terms and limits IT application control. When an order exceeds the credit limit, an authorisation from both the heads of publishing and accounts is required for the transaction to proceed manual control. The accounts receivable clerk checks the prices and arithmetic accuracy of the invoices and signs the invoice as evidence of her check. The cashier reconciles the total of the batch postings to accounts receivable to the amount banked for the day. The assistant accountant prepares a bank reconciliation each month Segregation of duties between accounts receivable and cash handling functions
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Question 09
William Jackson, the CEO of RPL, has requested that the tests of controls only be performed once due to the disruption caused by audit staff to the work of the staff in the printing and shipping department. In addition, he has requested that the tests of controls occur only during July 2018, as this is traditionally the quietest time of the year for RPL. You expect the audit report to be signed on 15 August 2018.
a) For each of the manual and IT application control activities identified, design an appropriate
- Accounting system automatically stops the order for any publishers who have exceeded their credit terms and limits IT application control.
- When an order exceeds the credit limit, an authorisation from both the heads of publishing and accounts is required for the transaction to proceed manual control.
- The accounts receivable clerk checks the prices and arithmetic accuracy of the invoices and signs the invoice as evidence of her check.
- The cashier reconciles the total of the batch postings to accounts receivable to the amount banked for the day.
- The assistant accountant prepares a bank reconciliation each month
- Segregation of duties between accounts receivable and cash handling functions.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education