Reconcile recorded cash disbursements with cash disbursements on the bank statement for a test month.

1. Discuss the following items with client personnel and observe activities:
a. Segregation of duties
b. Use of an adequate chart of accounts
c. Use of pre-approved vendor list.
d. Monthly reconciliation of accounts payable master file with the general ledger
2. Foot acquisitions and cash disbursements journals for a test month and trace postings to the
general ledger.
3. Examine file of completed bank reconciliations.
4. Account for a sequence of cancelled checks.
5. Reconcile recorded cash disbursements with cash disbursements on the bank statement for a test month.
Acquisitions
6. Trace entries in the acquisitions journal to related vendors’ invoices, receiving reports, and purchase orders.
a. Examine indication of internal verification of dates, unit costs, prices, extensions and footings, account classifications, recording in the journal, and posting and summarization.
b. Examine supporting documents for propriety.
c. Compare prices on vendors’ invoices with approved price limits established by management.
d. Recompute information on vendors’ invoices.
e. Examine vendors’ invoices for proper account classification.
f. Compare dates of recorded acquisitions with dates on receiving reports.
g. Examine voucher document package for indication of internal verification.
7. Account for a sequence of purchase orders and voucher document packages.
8. Trace a sample of receiving reports to the acquisitions journal.

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