The process for our audit includes a test of all documentary reports that supports the evidence of transactions for the account. The conclusion of audit will require a written statement from you regarding the financial statement.…
• Determine which accounts belong to the Balance Sheet and which accounts belong to the Income Statement…
Our procedures will include tests of documentary evidence supporting the transactions recorded in the accounts, tests of the physical existence of inventories, and direct confirmation of receivables and payables and certain other assets and liabilities by correspondence with selected customers, creditors, and financial institutions. Also, we will plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. Because an audit is designed to provide reasonable, but not absolute, assurance and because we will not perform a detailed examination of all transactions, there is a risk that material errors, fraud, or illegal acts, may exist and not be detected by us. In addition, an audit is not designed to detect immaterial errors, fraud, or other illegal acts or illegal acts that…
9. Ensure balance sheets and income statements are accurate. Check to make sure receivables and payables are accurate. Ensure assets are valued correctly. Anything that might suspect fraud or management misstatement.…
We have learned the basic internal control procedure. Our company believes the current procedures are very basic and need to address other issues for the company. These items will build and over all currently to run a check and balance system for the accounting system to work. First, there needs to be more detail in separation of duties. Separation of duties is “structures work assignment so that one employee’s work activities serve as a check on those of another employee” (Bagranoff, 2008).Within the bank reconciliation procedure, once the manager has made a deposit to the bank they should add all the checks and cash to balance out their daily activity. This report should be sending with the cash courier and reviewed an accounting clerk daily. This will help with catching errors immediately whether then waiting on the bank. Second this statement needs to be address, “One employee has responsibility for the daily and monthly bank reconciliations. Additional duties performed by the employee include backup functions for accounts payable and payroll when the employee is not available to perform their responsibilities” (Kudler’s Intranet). This one employee should be an assistant manager and they should…
2. All accounts payable owed as of the balance sheet date are included in the financial…
4. In a sole proprietorship, an owner=s name is added to the Vendor List for recording…
3. To determine whether: Accrued liabilities represent all obligations for resources and services acquired through the balance sheet date and have been properly recorded.…
Keeping an accurate and up to date record of your transactions is a very crucial part of maintain a healthy business. Either the owner or bookmaker will make an accurate record on what is coming in and out of the business such as money in from sales or money out through bills and expenses. If you don’t record your transaction correctly then you end up in trouble with the HM Revenue (HMRC).…
2. As for the confirmation of accounts receivable, a major audit activity is to contact customers directly and ask them to confirm the amount of unpaid accounts receivable at the end of the reporting period, or to send positive confirmation requests. This works primarily for larger account balances. Nevertheless, this may include a situation where a few random customers have smaller outstanding invoices. With respect to the write-off of accounts receivable, there are two steps involved in the audit procedure. The first step is to consider the reasonableness of bad debt expense and returns, and compare those with prior years. The second step is to examine the documentation and aging schedule related to write-offs over the period, and then decide whether they were properly authorized. For auditing sales return and allowance, the major activities are to examine whether returns were…
The next financial statement would be the balance sheet (Kimmel et al, 2009). The use of the balance sheet is so a company can report the assets and the claims to the assets during a certain period. The claims to assets can be from two groups, the first would be the claims to creditors that would be the liabilities and the second would be the claims to owners that would be the stockholders equity. The basic accounting equation is Assets = Liabilities + Stockholders’ Equity. Both sides of this equation must balance…
Accounting 211 Study Guide for Final Exam Chapters 7 – 12 Chapter 7: 1. Terminology Accounting information system People, records, and methods that collect and process data from transactions and events, organize them in useful forms, and communicate results to decision makers Accounts payable ledger Subsidiary ledger listing individual creditor (supplier) accounts Accounts receivable ledger Subsidiary ledger listing individual customer accounts. Batch processing Accumulating source documents for a period of time and then processing them all at once such as once a day, week, or month. Cash disbursements journal Special journal normally used to record all payments of cash; also called cash payments journal Cash receipts journal Special journal normally used to record all receipts of cash.…
The collection of accounts receivable seems to be slightly improving. It took the company slightly over one-half day less to collect on its accounts receivable in 2013 than in 2012.…
Cash Disbursements, via the University of Maryland College Park Foundation, are requested by the specific account holder in various schools and departments at College Park. Please use the Disbursement Request Form in Appendix H.…
Understand the audit planning implications of using analytical procedures as substantive tests of account balances…