The following tests of controls and substantive tests of transactions audit procedures for acquisitions and cash disbursements are to be used in the audit of Ward Publishing Company. You concluded that internal control appears effective and a reduced assessed control risk is likely to be cost beneficial. Ward’s active involvement in the business, good separation […]
The Broughton Cap Company requires that prenumbered receiving reports be completed when purchased inventory items arrive in the receiving department. At the time of receipt, the receiving clerk writes the date of receipt on the receiving document. The last receipt in the fiscal year ended June 30, 2019, was recorded on receiving report 7280. The […]
The following are various audit procedures performed in the audit of the acquisition and payment cycle and accounts payable: 1. Foot the acquisitions journal for the month of August and trace postings to general ledger and accounts payable master file. 2. Determine that the amount of purchases from major customers is properly disclosed in the […]
1. Explain why the emphasis in auditing property, plant, and equipment is on the current period acquisitions and disposals rather than on the balances in the account carried forward from the preceding year. 2. What is the most important balance-related audit objective for depreciation expense? What are the auditor’s primary concerns?
The following auditing procedures were performed in the audit of accounts payable: 1. Obtain a list of accounts payable. Re-add and compare with the general ledger. 2. Trace from the general ledger trial balance and supporting documentation to deter- mine whether accounts payable, related parties, and other related assets and liabilities are properly included in […]
Ward Publishing Company — Part I (See p. 648 for Part II, and Case 19-28 on p. 673 for Part III) Tests of Controls and Substantive Tests of Transactions Audit Procedures for Acquisitions and Cash Disbursements 1. Foot and cross-foot the acquisitions and cash disbursements journals for two months and trace totals to postings in […]
The Broughton Cap Company requires that prenumbered receiving reports be completed when purchased inventory items arrive in the receiving department. At the time of receipt, the receiving clerk writes the date of receipt on the receiving document. The last receipt in the fiscal year ended June 30, 2019, was recorded on receiving report 7280. The […]
The following audit procedures are included in the audit program for the audit of the financial statements of Golden State Overnight Express: 1. Select a sample of acquisitions from the acquisitions journal and perform the following: a. Vouch the transaction to the voucher package that includes the matched receiving report, purchase order, and vendor invoice. […]
For each of the eight types of evidence discussed in Chapter 7, identify whether it is applicable for risk assessment procedures, tests of controls, substantive tests of transactions, substantive analytical procedures, and tests of details of balances. 13-11 (OBJECTIVE 13-2) Rank the following types of tests from most costly to least costly: substantive analytical procedures, […]
INTEGRATED CASE APPLICATION—PINNACLE MANUFACTURING: PART IV The purpose of Part IV is to obtain an understanding of internal control and assess control risk for Pinnacle Manufacturing’s acquisition and cash disbursement transactions.a. Familiarize yourself with the internal control system for acquisitions and cash dis-bursements by studying the information in Figure 12-12 and Figure 12-13.b. Prepare a […]
