Questions On The Audit Group Project

This control is directly related to the accuracy transaction-related audit objective for sales. The auditor might test the effectiveness of this control by examining a sample of duplicate sales invoices for the clerk’s initials indicating that the unit selling price was verified.

This verification only tests for complete entries, it does not guarantee the correctness of the numbers entered. 8. Click on the Post Entry button. The entry will be recorded in the General Journal and posted to the General Ledger. Continue entering the transactions for the first week. If you discover that a transaction entered into the system at an earlier time needs correction, simply reverse or back out the incorrect entry and then enter the transaction correctly. More detailed instructions on error correction procedures are demonstrated in the next transaction.

Sales invoices are prepared in batches on a daily basis using numbered sales invoices. Sales invoice numbers are automatically generated by the company’s computer system. The accounts receivable clerk does not have appropriate computer rights to override the computer-generated invoice number. Upon preparing sales invoices, the accounts receivable clerk verifies that the first invoice number of the batch is consistent with the last invoice number of the previous batch. Inconsistencies or skipped sales invoice numbers are investigated and resolved before new sales invoices are prepared. The items shipped are compared to the items billed for proper quantity, price, and other sales order terms.

Inquire about duties for individuals responsible for cash collections and observe whether they have access to accounting or shipping functions.

Quality Objectives - The quality objectives define measurable goals relative to the company's quality management system. Requirements on the quality objectives are in ISO 9001:2008 section 5.4.1.

An important decision for any shareholder is deciding whether or not to do business with that company. When a business is audited, the operations are reviewed to make sure that nothing is being hidden. An auditor will review the company’s financial statement and practices to confirm that each are direct and correct. The financial statements are the business’s way of representing them and showing that they are following the Generally Accepted Accounting Principles. The audit process is an important one because it provides a platform for the auditor’s opinion concerning the financial statements of the company. As part of the audit process the auditor will conduct an audit plan that outlines a number of actions that he or she will be perform while also detailing the reason for those actions. With every audit, the business’s management is in charge of handing over the financial statements that the auditor will review; while the auditor will review the statements for any material or immaterial misstatements.

An auditor traced a sample of purchase orders and the related receiving reports to the purchases journal. The purpose of this substantive audit procedure most likely was to

SUBJECT: Beginning the Audit Report (Engagement letter, Engagement checklist, Outline of timeframes and milestones of the audit)

1. List the transactions that must occur within the reengineered purchase and payment system and the activity or event that triggers the transaction. (Add or delete rows as needed)

However, a cross-reference of the shipping documents could not be located for 25 sample items due to the lack of prenumbered shipping documents. • Testing of the deposit slips show on the bank reconciliation within a standard 48 hours, and deposits are recorded in the correct reporting period establishing adequate cutoff measures. • Confirm the accounts receivables by reconciling the actual customer’s balances to the balance sheet. Confirm that the customer balances are correct, authentic obligations and are valid. Newham had ten mathematical errors and needs to implement data systems that will prevent this concern.

Cash checks , accounting, bookkeeping , audit and correct accounting , and then passed to the Members of the accounting review , Members of the accounting review is recognized as correct , it is passed to the cashier , the cashier stamped cash paid , the payee can be the cashier 's office to receive cash ( cashier reconciliation with the payee orally ) . Note on transfer of audio content is the constant cash checks, handling audited by the accounting bookkeeper accounting review of the members of the accounting review. Here is a recorded time. Cash checks and payment behavior Bank note of transfer (such as the internal dealings of

The purpose of Part 1 is to perform preliminary analytical procedures. You have been asked to focus your attention on two purposes of analytical procedures:

The provider order entry-system that is usually more reliable is electronic. The reason is an electronic order entry system allows

d.) The Blue Mountain Utility Company was having difficulty with its customer payments. The payment amounts were entered directly into a terminal, and the transaction file thus created was used to update the customer master file. Among the problems encountered with this system were the application of customer payments to the wrong accounts and the creation of multiple customer master file records for the same account.

c. Trace the check number and amount of outstanding items – Occurrence, Completeness, & Accuracy (AU-C 315.A114 a.i-iii)