Cash disbursements Archives

Why is the monthly reconciliation of bank accounts by an independent person an important internal control over cash balances? Which individuals will generally not be considered independent for this responsibility?

Posted on February 19, 2023 by Assessments

1. Explain the relationships among the initial assessed control risk, tests of controls and substantive tests of transactions for cash disbursements, and the tests of details of cash balances. Give one example in which the conclusions reached about internal controls in cash disbursements will affect the tests of cash balances. 2. Why is the monthly […]

Inquire and observe whether the accounts payable master file balances are periodi- cally reconciled to vendors’ statements by the controller.Examine evidence that the numerical sequence of checks is accounted for by someone independent of the preparation function.

Posted on February 15, 2023 by Assessments

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 […]

What follow-up procedures would you use to determine more about the nature of each exception?

Posted on February 15, 2023 by Assessments

In testing cash disbursements for the Jay Klein Company, you obtained an understanding of internal control. The controls are reasonably good, and no unusual audit problems arose in previous years. Although there are not many individuals in the accounting department, there is a reasonable separation of duties in the organization. There is a separate purchasing […]

What is the importance of cash discounts to the client and how can the auditor verify whether they are being taken in accordance with company policy?

Posted on February 15, 2023 by Assessments

List five asset accounts, three liability accounts, and five expense accounts included in the acquisition and payment cycle for a typical manufacturing company. 18-2 (OBJECTIVES 18-2, 18-7) Distinguish between a vendor’s invoice and a vendor’s state- ment. Which document should ideally be used as evidence in auditing acquisition transactions and which is best when verifying […]

Examine initials indicating that the controller balances the accounts payable master file to the general ledger monthly.

Posted on February 12, 2023 by Assessments

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 […]

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

Posted on February 11, 2023 by Assessments

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 […]

What procedures can help protect cash disbursements? Provide examples within service or merchandize industries.

Posted on November 10, 2022 by Assessments

Learning Engagement #3 What procedures can help protect cash disbursements? Provide examples within service or merchandize industries. Instructor Guidance: Review…and post Answers Before Wednesday and replies by Sunday 11:55PM Chapter 4 of the text focuses on cash accounting, including internal controls and procedures to help prevent fraud. Yet fraud still takes place. As you answer […]

Determine what applicable audit procedure(s) should be conducted to identify whether any material misstatements exist .Explain why you think this procedure is best for this situation.

Posted on June 8, 2021 by Ambrose

Internal Controls over Cash The following are deficiencies in internal controls over cash. When the cashier isn’t available, Amy prepares both the deposit and opens the mail. The mail clerk may not prepare a remittance advice for the A/R department if a customer does not submit a one with a payment. Sometimes, the treasurer’s department […]

Essay Quoll

Tag: Cash disbursements

Why is the monthly reconciliation of bank accounts by an independent person an important internal control over cash balances? Which individuals will generally not be considered independent for this responsibility?

Inquire and observe whether the accounts payable master file balances are periodi- cally reconciled to vendors’ statements by the controller.Examine evidence that the numerical sequence of checks is accounted for by someone independent of the preparation function.

What follow-up procedures would you use to determine more about the nature of each exception?

What is the importance of cash discounts to the client and how can the auditor verify whether they are being taken in accordance with company policy?

Examine initials indicating that the controller balances the accounts payable master file to the general ledger monthly.

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

What procedures can help protect cash disbursements? Provide examples within service or merchandize industries.

Determine what applicable audit procedure(s) should be conducted to identify whether any material misstatements exist .Explain why you think this procedure is best for this situation.