Answered: wing categories, define the purpose of…

Auditing: A Risk Based-Approach to Conducting a Quality Audit

10th Edition

ISBN:9781305080577

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter10: Auditing Cash And Marketable Securities

Section: Chapter Questions

Problem 45RSCQ

See similar textbooks

Related questions

Question

Using the following categories, define the purpose of each of thecommon controls over cash listed below. You may use multiple categories for each control.

Categories of Purpose of each Common Control

-To prevent theft of cash

-To ensure complete recording of cash

-To prevent modification of the recording of cash

-To detect inaccuracy of ending cash balance or misstatements therein.

-To ensure that all items are uniquely identified and that an adequate audit trail exists for transactions.

-To serve as a deterrent for fraud.

Common Controls Over Cash

-Segregation of duties

-Restrictive endorsements of customer checks

-Independent bank reconciliation by employees who do not handle cash

-Computerized control totals and edit tests

-Authorization of transactions

-Prenumbered cash receipts documents and turn around documents

-Periodic internal audits

-Competent, well-trained employees

Expert Solution

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions