Auditing And Assurance Services
17th Edition
ISBN: 9780134897431
Author: ARENS, Alvin A.
Publisher: PEARSON
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Chapter 23, Problem 21DQP
a.
To determine
Identify the appropriate
b.
To determine
c.
To determine
Post
d.
To determine
Identify how each bank transfer should be included in Dec 31, 2019,
e.
To determine
Identify how each bank transfer should be included in Dec 31, 2019, bank reconciliation statement for branch bank records.
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In your audit of Ginko Company, you have received a cash confirmation and a cutoff statement from the bank on Ginko’s one bank account. Prepare a list of substantive procedures for Ginko’s cash
a. Indicate whether each procedure, given below, is a test of control, substantive test of transactions, substantive analytical procedure, or a test of details of balances.
b. Identify the type of evidence for each procedure.
The following are 11 audit procedures taken from an audit program:
1. Discuss the duties of the cash disbursements clerk with him and observe whether he has responsibility for handling cash or preparing the bank reconciliation.
2. Examine vendors’ invoices and other supporting documents to determine whether
large amounts in the repair and maintenance account should be capitalized.
3. Inquire about the accounts payable supervisor’s monthly review of a computer-generated exception report of receiving reports and purchase orders that have not been matched with a vendor invoice.
4. Foot the accounts payable trial balance and compare the total with the general ledger.
5. Confirm accounts payable balances directly with vendors.
6. Account for a sequence of checks in the…
Identify the internal control procedures applicable to cash receipts for Ferguson Company in each of the following cases.
1.
All cashiers are bonded.
Documentation Procedures
Physical Controls
Segregation of Duties
Establishment of Responsibility
Human Resource Controls
2.
The treasurer compares the total cash receipts to the bank deposit daily.
Independent Internal Verification
3.
The bookkeeper records cash receipts, which are held by the treasurer.
4.
Only the treasurer holds cash receipts.
5.
Deposit slips are completed for each deposit.
Chapter 23 Solutions
Auditing And Assurance Services
Ch. 23 - Explain the relationships among the initial...Ch. 23 - Prob. 2RQCh. 23 - Prob. 3RQCh. 23 - Prob. 4RQCh. 23 - Prob. 5RQCh. 23 - Prob. 6RQCh. 23 - Prob. 7RQCh. 23 - Prob. 8RQCh. 23 - Prob. 9RQCh. 23 - Prob. 10RQ
Ch. 23 - Prob. 11RQCh. 23 - Prob. 12RQCh. 23 - Prob. 13RQCh. 23 - Prob. 14RQCh. 23 - Prob. 15.1MCQCh. 23 - Prob. 15.2MCQCh. 23 - Prob. 15.3MCQCh. 23 - Prob. 16.1MCQCh. 23 - Prob. 16.2MCQCh. 23 - Prob. 16.3MCQCh. 23 - Prob. 17.1MCQCh. 23 - Prob. 17.2MCQCh. 23 - Prob. 17.3MCQCh. 23 - Prob. 18DQPCh. 23 - Prob. 19DQPCh. 23 - Prob. 20DQPCh. 23 - Prob. 21DQPCh. 23 - Prob. 22DQPCh. 23 - You are doing the first-year audit of Sherman...Ch. 23 - Prob. 24DQPCh. 23 - Prob. 25DQPCh. 23 - The amount of subjectivity involved in...
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- Upon receipt of customers’ checks in the mail room, a responsible employee should prepare a remittance list that is forwarded to the cashier. A copy of the list should be sent to thea. Internal auditor to investigate the list for unusual transactions.b. Treasurer to compare the list with the monthly bank statement.c. Accounts receivable bookkeeper to update the subsidiary accounts receivable records.d. Entity’s bank to compare the list with the cashier’s deposit slip.arrow_forwardYou are an audit supervisor in Misso & Co, an audit firm. Your audit team has been assigned to perform the audit on sales and other income for a client, Dimmy Sdn. Bhd. (Dimmy). You are given four audit trainees to assist you in completing the audit on cash and bank. In addition, you are also required to audit on the receivables account of Dimmy.(a) Explain ANY FIVE (5) types of procedures that an auditor can perform to obtain audit evidence and provide an example for each type of procedure.arrow_forwardIsland Trading Co., a client of your CPA firm, has requested your advice on the following problem. It has three clerical employees who must perform the following functions: (1) Maintain general ledger. (2) Maintain accounts payable ledger. (3) Maintain accounts receivable ledger. (4) Maintain cash disbursements journal and prepare checks for signature. (5) Issue credit memos on sales returns and allowances. (6) Reconcile the bank account. (7) Handle and deposit cash receipts. Assuming that there is no problem as to the ability of any of the employees, the company requests your advice on assigning the above functions to the three employees in such a manner as to achieve the highest degree of internal control. It may be assumed that these employees will perform no other accounting functions than the ones listed and that any accounting functions not listed will be performed by persons other than these three employees. a. List four possible unsatisfactory combinations of the…arrow_forward
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