Audit of Cash Balances
|
|
- Rudolf Montgomery
- 8 years ago
- Views:
Transcription
1 Audit of Cash Balances Chapter Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 23-1
2 Learning Objective 1 Show the relationship of cash in the bank to the various transaction cycles Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 23-2
3 Relationships of Cash in the Bank and Transaction Cycles Capital Acquisition and Repayment Cycle: Capital Stock Common Redemption Issue of of stock stock Paid-in Capital in Excess of Par Common Redemption of stock Issue of stock Dividends Payable Payment of dividends Cash in Bank 2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 23-3
4 Relationships of Cash in the Bank and Transaction Cycles Acquisition and Payment Cycle: Accounts Payable Payment Cash in Bank 2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 23-4
5 Relationships of Cash in the Bank and Transaction Cycles Sales and Collection Cycle: Accounts Receivable Cash receipts Cash Discounts Taken Gross Sales Cash sales Cash in Bank 2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 23-5
6 Relationships of Cash in the Bank and Transaction Cycles Payroll and Personnel Cycle: Accrued Wages, Salaries, Bonuses, and Commissions Payment Accrued Payroll Tax Expense Payment Withheld Income Taxes and Other Deductions Payment Cash in Bank 2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 23-6
7 Cash in the Bank and Transaction Cycles Misstatements which may not be discovered as a part of the audit of the bank reconciliation: Failure to bill a customer An embezzlement of cash by interception of cash receipts from customers before they are recorded, with the account charged off as a bad debt 2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 23-7
8 Cash in the Bank and Transaction Cycles Duplicate payment of a vendor s invoice Improper payments of officers personal expenditures Payment for raw materials that were not received Payment to an employee for more hours worked Payment of interest to a related party for an amount in excess of the going rate 2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 23-8
9 Cash in the Bank and Transaction Cycles Misstatements which are normally discovered as a part of the tests of a bank reconciliation: Failure to include a check that has not cleared the bank, even though it has been recorded in the cash disbursements journal Cash received by the client subsequent to the balance sheet date but recorded as cash receipts in the current year 2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 23-9
10 Cash in the Bank and Transaction Cycles Deposits recorded as cash receipts near the end of the year, deposited in the bank in the same month, and included in the bank reconciliation as a deposit in transit Payments on notes payable debited directly to the bank balance by the bank but not entered in the client s records 2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 23-10
11 Learning Objective 2 Identify the major types of cash accounts maintained by business entities Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 23-11
12 Types of Cash Accounts General cash account Imprest accounts Branch bank account Imprest petty cash fund Cash equivalents 2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 23-12
13 Relationship of General Cash to Other Cash Accounts Branch Bank Account Imprest Payroll Account General Cash Cash Equivalents Imprest Petty Cash Fund 2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 23-13
14 Learning Objective 3 Design and perform audit tests of the general cash account Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 23-14
15 Methodology for Designing Tests of Balances for Cash in the Bank Identify client business risks affecting cash in bank Set tolerable misstatement and assess inherent risk for cash in bank Assess control risk for several cycles Phase I Phase I Phase I 2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 23-15
16 Methodology for Designing Tests of Balances for Cash in the Bank Design and perform tests of controls and substantive tests of transactions for several cycles Phase II 2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 23-16
17 Methodology for Designing Tests of Balances for Cash in the Bank Design and perform analytical procedures for cash in bank Design tests of details of cash in bank to satisfy balance-related audit objectives Phase III Audit procedures Sample size Items to select Timing Phase III 2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 23-17
18 Audit Schedule for a Bank Reconciliation Clawson Industries Bank Reconciliation 12/31/07 Schedule A-2 Account 101 General account, First National Bank Date Prepared by Client DED 1/10/08 Approved by SW 1/18/08 Balance per bank $109,713 Add: Deposits in transit 21,117 Deduct: Outstanding checks 87,462 Other reconciling items: Bank error 15,200 Balance per bank, adjusted $ 28,168 Balance per books before adjustments $ 32,584 Adjustments: Unrecorded bank service charge 216 NSF 4,200 4,416 Balance per books, adjusted $ 28, Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 23-18
19 Balance-related Audit Objectives Detail tie-in: Cash in the bank foots correctly and agrees with the general ledger. Existence: Cash in the bank as stated on the reconciliation exists. Completeness: Existing cash in the bank is recorded Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 23-19
20 Balance-related Audit Objectives Accuracy : Cash in the bank as stated on the reconciliation is accurate. Cutoff: Cash receipts and cash disbursements transactions are recorded in the proper period Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 23-20
21 Procedures Receipt of a bank confirmation Receipt of a cutoff bank statement Tests of the bank reconciliation 2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 23-21
22 Extended Tests of the Bank Reconciliation When the auditor believes that the year-end bank reconciliation may be intentionally misstated, it is appropriate to perform extended tests of the year-end bank reconciliation Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 23-22
23 Types of Audit Tests Used for General Cash in Bank Cash in Bank Beginning balance Cash receipts Cash disbursements Audited by TOC-T, STOT, and AP Audited by TOC-T, STOT, and AP Ending balance Audited by TOC-B, AP, and TDB TOC-T + TOC-B + STOT + AP + TDB = Sufficient appropriate evidence 2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 23-23
24 Learning Objective 4 Recognize when to extend audit tests of the general cash account to test further for material fraud Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 23-24
25 Fraud Oriented Procedures The auditor must extend the procedures in the audit of year-end cash to determine the possibility of a material fraud Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 23-25
26 Extended Tests of the Bank Reconciliation When the auditor believes that the year-end bank reconciliation may be intentionally misstated, it is appropriate to perform extended tests of the year-end bank reconciliation Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 23-26
27 Proof of Cash All recorded cash receipts were deposited All deposits in the bank were recorded in the accounting records All recorded cash disbursements were paid by the bank All amounts that were paid by the bank were recorded 2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 23-27
28 Proof of Cash Includes the following reconciliation tasks: 1. The balance on the bank statement with the general ledger balance at the beginning of the proof-of-cash period 2. Cash receipts deposited per the bank with the cash receipts journal for a given period 2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 23-28
29 Proof of Cash Includes the following reconciliation tasks: 3. Cancelled checks clearing the bank with those recorded in the cash disbursements journal for a given period 4. The balance on the bank statement with the general ledger balance at the end of the proof-of-cash period 2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 23-29
30 Interbank Transfers The accuracy of the information on the interbank transfer schedule should be verified. The interbank transfers must be recorded in both the receiving and disbursing banks. The date of the recording of the disbursements and receipts for each transfer must be in the same fiscal year Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 23-30
31 Interbank Transfers Disbursements on the interbank transfer schedule should be correctly included in or excluded from year-end bank reconciliation as outstanding checks. Receipts on the interbank transfer schedule should be correctly included in or excluded from year-end bank reconciliations as deposits in transit Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 23-31
32 Learning Objective 5 Design and perform audit tests of the imprest payroll bank account Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 23-32
33 Audit of the Imprest Payroll Bank Account Typically, the only reconciling items are outstanding checks Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 23-33
34 Learning Objective 6 Design and perform audit tests of imprest petty cash Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 23-34
35 Petty Cash Petty cash is a unique account because it is often immaterial in amount, yet it is verified on many audits. The account is verified primarily because of the potential for embezzlement and the client s expectation of an audit review even when the amount is immaterial Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 23-35
36 Audit of Imprest Petty Cash Internal controls over petty cash Audit tests for petty cash 2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 23-36
37 End of Chapter Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 23-37
Audit of the Payroll and Personnel Cycle
Audit of the Payroll and Personnel Cycle Chapter 18 2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 18-1 Learning Objective 1 Identify the accounts and transactions in the payroll
More informationAudit of the Inventory and Warehousing Cycle
Audit of the Inventory and Warehousing Cycle Chapter 21 2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 21-1 Learning Objective 1 Describe the business functions and the related
More informationAudit of the Sales and Collection Cycle: Tests of Controls and Substantive Tests of Transactions
Audit of the Sales and Collection Cycle: Tests of Controls and Substantive Tests of Transactions Chapter 14 2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 14-1 Learning Objective
More informationChapter 18 Auditing Investments and Cash Balances
Chapter 18 Auditing Investments and Cash Balances General Considerations Cash balances include undeposited receipts on hand, cash in bank in unrestricted accounts, and imprest accounts such as petty cash
More information10-1. Auditing Business Process. Objectives Understand the Auditing of the Enteties Business. Process
10-1 Auditing Business Process Auditing Business Process Objectives Understand the Auditing of the Enteties Business Process Identify the types of transactions in different Business Process Asses Control
More informationKANSAS CITY, MISSOURI RESPONSES TO THE FISCAL YEAR 2013 AUDIT MANAGEMENT LETTER
KANSAS CITY, MISSOURI RESPONSES TO THE FISCAL YEAR 2013 AUDIT MANAGEMENT LETTER Material Weaknesses (0) No material weaknesses were reported for FY 2013. Significant Deficiencies (1) Grant Receivable Accounting
More informationCash in bank checking account $22,500 U.S. treasury bills 5,000 Cash on hand 1,350 Undeposited customer checks 1,840 Total $30,690 Requirement 2
Chapter 7 Solutions EXERCISES Exercise 7 2 Cash and cash equivalents includes: Cash in bank checking account $22,500 U.S. treasury bills 5,000 Cash on hand 1,350 Undeposited customer checks 1,840 Total
More informationChapter 15: Accounts Payable and Purchases
Accounting Research Manager - Audit Private Accounting Research Manager Miller Interpretations and Other Resources Knowledge-Based Audit Procedures Chapter 15: Accounts Payable and Purchases Chapter 15:
More informationLEHMAN COLLEGE: DEPARTMENTAL RETENTION SCHEDULE 11/8/2013 ACCOUNTS PAYABLE. List of cost center codes for all College expenditures
AP-1 Appropriations of Expenditure Codes List of cost center codes for all College expenditures 6 years after superseded or obsolete General 9[9] b AP-2 Metrics Reports Reports prepared for the VP of Administration
More informationChapter 15 Auditing the Expenditure Cycle
Chapter 15 Auditing the Expenditure Cycle Expenditure cycle consists of activities related to the acquisition of and payment for plant assets and goods and services. Two major transaction classes: 1 purchases
More informationWEEK 6. Objective 1: Sales Transaction Cycle Risks
WEEK 6 CSA ch4 & GS ch10: pp457-488 Objective 1: Sales Transaction Cycle Risks The major assertions of interest to the auditor in ST of balances for account receivable are existence and valuation and allocation.
More informationMateriality and Risk. Chapter 9. 2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 9-1
Materiality and Risk Chapter 9 2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 9-1 Learning Objective 1 Apply the concept of materiality to the audit. 2008 Prentice Hall Business
More informationAudit Program for Accounts Payable and Purchases
Form AP 50 Index Audit Program for Accounts Payable and Purchases Legal Company Name Client: Balance Sheet Date: Instructions: The auditor should refer to the audit planning documentation to gain an understanding
More informationwww.cebu-cpar.com CEBU CPAR CENTER, INC. AUDIT OF CASH AND CASH EQUIVALENTS
AUDIT OF CASH AND CASH EQUIVALENTS PROBLEM NO. 1 In connection with your audit of Caloocan Corporation for the year ended December 31, 2006, you gathered the following: 1. Current account at Metrobank
More informationStatement of Cash Flows
THE CONTENT AND VALUE OF THE STATEMENT OF CASH FLOWS The cash flow statement reconciles beginning and ending cash by presenting the cash receipts and cash disbursements of an enterprise for an accounting
More informationAccounting 408 Test 3b Section Row
Accounting 408 Test 3b Name Section Row Multiple Choice. (2 points each) Read the following questions carefully and indicate the one best answer to each question by placing an X (do not circle) over the
More informationTo the Rector, Wardens and Vestry of (Church Name; Church Address; City and Zip)
Section B. Sample Audit Committee Certificate Date To the Rector, Wardens and Vestry of (Church Name; Church Address; City and Zip) Subject: (Audit Year) Audit of (Church Name) We have inspected the statement
More informationChapter 10 Overall Audit Plan and Audit Program
Chapter 10 Overall Audit Plan and Audit Program Review Questions 10-1 The four types of tests used by auditors to determine whether financial statements are fairly stated are; 1. procedures to obtain an
More informationChapter 14 Audit of the Sales and Collection Cycle:
Chapter 14 Audit of the Sales and Collection Cycle: Tests of Control and Substantive Tests of Transactions Identify the accounts and the classes of transactions in the sales and collection cycle. Describe
More informationChapter 14 Completing the Tests in the Sales and Collection Cycle: Accounts Receivable
Chapter 14 Completing the Tests in the Sales and Collection Cycle: Accounts Receivable Review Questions 14-1 Tests of details of financial balances are designed to determine the reasonableness of the balances
More informationFINANCIAL AND PURCHASING RECORDS. Includes records showing a summary of receipts, disbursements and other activity against each account.
FINANCIAL AND PURCHASING RECORDS FN-1 Account Distribution Summaries (Treasurer s Report) Includes records showing a summary of receipts, disbursements and other activity against each account. Weekly/Monthly-
More informationAccounts Payable. Best Practices: Existing Control: Control Gap: Controls Evaluation and Gap Analysis. Purchasing
Accounts Payable Gap Analysis: POS identifies the following Best Practices as efficient and effective control processes for the above risk. Listed for comparison are the controls currently in place, if
More informationFINANCIAL POLICIES INDEX
FINANCIAL POLICIES INDEX Page Accounts Payable 2 Cash Receipts 6 Credit Cards 9 General Ledger Adjustments 10 Fixed Asset 11 Payroll Tax Reporting 13 Travel Reimbursement 14 Handling Mail 15 1 Accounts
More informationBEDFORD PUBLIC SCHOOLS BUSINESS OFFICE PROCEDURES MANUAL
BEDFORD PUBLIC SCHOOLS BUSINESS OFFICE PROCEDURES MANUAL Revised 3-27-2014 TABLE OF CONTENTS Section 1: Section 2: Section 3: Section 4: Section 5: Section 6: Section 7: Section 8: Section 9: Cash Management
More informationCOMPONENTS OF THE STATEMENT OF CASH FLOWS
ILLUSTRATION 24-1 OPERATING, INVESTING, AND FINANCING ACTIVITIES COMPONENTS OF THE STATEMENT OF CASH FLOWS CASH FLOWS FROM OPERATING ACTIVITIES + Sales and Service Revenue Received Cost of Sales Paid Selling
More informationMonitoring of controls Information System Control procedures
Chapter 7 Define internal control Organizational plan and all the related measures to: Congress passed SOX after the Enron and WorldCom scandals 3 4 6 Monitoring of controls Information System Control
More informationHow To Calculate A Trial Balance For A Company
THE BASIC MODEL The accounting information system is designed to collect and organize data into information that is useful for stakeholders. The Accounting Equation The basic accounting equation is what
More informationHow to set up a people based. accounting system that makes your. small business work for you. Thomas G. Post. Certified Public Accountant 281-351-2688
How to set up a people based accounting system that makes your small business work for you. By Thomas G. Post Certified Public Accountant 281-351-2688 www.texastaxman.com 1 Title How to set up a people
More informationSubstantive Tests of Transactions and Balances
10 CHAPTER Substantive Tests of Transactions and Balances LEARNING OBJECTIVES After studying this chapter you should be able to: 1 2 identify and distinguish between tests of controls and substantive tests
More informationAUDIT PLAN: RECEIVABLES
Audit procedures for receivables AUDIT PLAN: RECEIVABLES Completeness Agree the balance from the individual sales ledger accounts to the aged receivables listing and vice versa. Match the total of the
More informationAPPENDIX A DRAFT Policy DIE-1 School Funds: Audit & Financial Monitoring Procedures
APPENDIX A DRAFT Policy DIE-1 School Funds: Audit & Financial Monitoring Procedures Administrative Guidelines Financial Monitoring Procedures The following Administrative Guidelines support the Principal
More informationVol. 1, Chapter 7 The Statement of Cash Flows
Vol. 1, Chapter 7 The Statement of Cash Flows Problem 1: Solution Transaction # Identification 1 Operating 2 Investing 3 Noncash transaction 4 Financing 5 Noncash transaction 6 Operating 7 Investing 8
More informationCHAPTER II GENERAL LEDGER ACCOUNTS
CHAPTER II GENERAL LEDGER ACCOUNTS A general ledger is basic to an accounting system. The General Ledger of a fund is a summary record containing the balance of assets, liabilities, deferred revenues,
More informationAccounts Payable and Short Term Liabilities
Chapter 9 Accounts Payable and Short Term Liabilities Accounts payable represent short term obligations to be paid to parish and school vendors/creditors for goods purchased or services provided. Generally,
More informationCONTRACTOR S ACCOUNTING HANDBOOK
CONTRACTOR S ACCOUNTING HANDBOOK Table of Contents INTRODUCTION... 4 A. ACCOUNTING AND FINANCIAL REPORTING... 4 1.0 Basis of Accounting... 4 1.1 Cash Basis... 5 1.2 Accrual Basis... 5 1,3 Accruals... 5
More informationCHAPTER 7 General Journal Entries
CHAPTER 7 Journal Entries Table of Contents Section Page INTRODUCTION 1 1 GENERAL FUND JOURNAL ENTRIES 2 1 Opening Entry... 1 Budget Entries... 2 Budget Entries Modifications... 2 Revenues Property Tax...
More informationPROFESSOR S NAME ACC 255 FALL 2011 COVER SHEET FOR COMPREHENSIVE PROBLEM 2 (CHAPTERS 2, 5-8)
COMPREHENSIVE PROBLEM 2 (CHAPTERS 2, 5-8) Page 137 NAME ANSWER KEY PROFESSOR S NAME SECTION SCORE ACC 255 FALL 2011 COVER SHEET FOR COMPREHENSIVE PROBLEM 2 (CHAPTERS 2, 5-8) INSTRUCTIONS: COMPLETE ALL
More informationExecutive - Salary Guide
Salary Guide Executive - Salary Guide Chief Financial Officer $138,000 to $250,000+ Highest ranking financially-oriented position within a company. Responsibilities include overall financial control and
More informationAccounting Skills Assessment Practice Exam Page 1 of 10
NAU ACCOUNTING SKILLS ASSESSMENT PRACTICE EXAM & KEY 1. A company received cash and issued common stock. What was the effect on the accounting equation? Assets Liabilities Stockholders Equity A. + NE +
More informationRAPID REVIEW Chapter Content
RAPID REVIEW BASIC ACCOUNTING EQUATION (Chapter 2) INVENTORY (Chapters 5 and 6) Basic Equation Assets Owner s Equity Expanded Owner s Owner s Assets Equation = Liabilities Capital Drawing Revenues Debit
More informationFinancial Accounting. John J. Wild. Sixth Edition. McGraw-Hill/Irwin. Copyright 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
Financial Accounting John J. Wild Sixth Edition McGraw-Hill/Irwin Copyright 2013 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 06 Reporting and Analyzing Cash and Internal Controls Conceptual
More informationExample: Spencer Company has the following information available as of April 30, 2002.
CASH AND CASH EQUIVALENTS on hand, demand deposits and other bank accounts are considered cash. equivalents are short-term investments (90 days or less) that can be converted into cash without any significant
More informationMonth End Protocols Preparation for Monthly Financial Statements
Month End Protocols Preparation for Monthly Financial Statements General Notes for Month / Year End Protocols For Small or Midsized Nonprofit Organizations MONTHLY A good rule of thumb is to print a trial
More informationTABLE OF CONTENTS CHAPTER 9
TABLE OF CONTENTS CHAPTER 9 Purpose...1 Balance Sheet Accounts...1 Assets...1 Cash...1 Accounts Receivable...2 Accounts Receivable Allowances...4 Loans and Notes Receivable...4 Loans and Notes Allowances...5
More informationCARRIAGE MUSEUM OF AMERICA ACCOUNTING POLICIES AND PROCEDURES MANUAL. February 2014
CARRIAGE MUSEUM OF AMERICA ACCOUNTING POLICIES AND PROCEDURES MANUAL February 2014 I. Introduction The purpose of this manual is to describe all accounting policies and procedures currently in use at The
More informationAuditor of Public Accounts Adam H. Edelen
Auditor of Public Accounts Adam H. Edelen FOR IMMEDIATE RELEASE Contact: Stephenie Steitzer stephenie.steitzer@auditor.ky.gov 502.564.5841 513.289.7667 Edelen Releases Audit of Former Owsley Clerk s Fee
More informationCHAPTER 7 General Journal Entries
CHAPTER 7 Journal Entries Table of Contents Section - Page INTRODUCTION 1-1 GENERAL FUND JOURNAL ENTRIES 2-1 Opening Entry...2-1 Budget Entries...2-2 Budget Entries Modifications...2-2 Revenues Property
More informationCEBU CPAR CENTER M a n d a u e C I t y
1 of 11 CEBU CPAR CENTER M a n d a u e C I t y AUDITING PROBLEMS AUDIT OF CASH AND CASH EQUIVALENTS PROBLEM NO. 1 You were able to gather the following from the December 31, 2005 trial balance of Peso
More informationNONPROFIT FINANCIAL MANAGEMENT SELF ASSESSMENT TOOL
NONPROFIT FINANCIAL MANAGEMENT SELF ASSESSMENT TOOL I. Financial Planning/Budget Systems 1. Organization has a comprehensive annual budget which includes all sources and uses of funds for all aspects of
More informationBUSINESS BOOKKEEPING & ACCOUNTS Designed to produce bookkeeping and accounts personnel trained in the
INTERNATIONAL DIPLOMA PROGRAM ON BUSINESS BOOKKEEPING & ACCOUNTS Designed to produce bookkeeping and accounts personnel trained in the MODERN PRACTICAL METHODS OF ACCOUNTING Trained and competent bookkeeping
More informationAUDIT PROCEDURES RECEIVABLE AND SALES
184 AUDIT PROCEDURES RECEIVABLE AND SALES Ștefan Zuca Abstract The overall objective of the audit of accounts receivable and sales is to determine if they are fairly presented in the context of the financial
More informationStudy Guide - Final Exam Accounting I
Study Guide - Final Exam Accounting I True/False Indicate whether the sentence or statement is true or false. 1. Entries in a sales journal affect account balances in both the accounts receivable ledger
More informationB Exercises 4-1. (d) Intangible assets. (i) Paid-in capital in excess of par.
B Exercises E4-1B (Balance Sheet Classifications) Presented below are a number of balance sheet accounts of Castillo Inc. (a) Trading Securities. (h) Warehouse in Process of Construction. (b) Work in Process.
More informationCaused By 1. Time. 2. Errors. lags $ XXX. but not by bank (e.g., deposits. Add: Deposits recorded by business. Cash balance per bank statement
ILLUSTRATION 8-5 BANK RECONCILIATION FORMAT Balances Should Agree Bank Reconciliation (Date) balance per bank statement Add: Deposits recorded by business but not by bank (e.g., deposits in transit) Less:Charges
More informationCHAPTER 13 AUDITING DEBT OBLIGATIONS AND STOCKHOLDERS EQUITY TRANSACTIONS
A U D I T I N G A RISK-BASED APPROACH TO CONDUCTING A QUALITY AUDIT 9 th Edition Karla M. Johnstone Audrey A. Gramling Larry E. Rittenberg CHAPTER 13 AUDITING DEBT OBLIGATIONS AND STOCKHOLDERS EQUITY TRANSACTIONS
More informationChapter Thirteen: General Ledger
Chapter Thirteen: General Ledger A. Journal Entries Page 1 Month End File In preparation for the month end process, a month end file is maintained throughout the month. This file contains all the supporting
More informationInternal Controls over Cash for Small Nonprofits
Internal Controls over Cash for Small Nonprofits Internal controls may be a sensitive issue in small nonprofit organizations. These organizations are built on the concepts of honesty, truthfulness, and
More informationJob Ready Assessment Blueprint. Accounting-Advanced. Test Code: 3900 / Version: 01
Job Ready Assessment Blueprint Accounting-Advanced Test Code: 3900 / Version: 01 Measuring What Matters Specific Competencies and Skills Tested in this Assessment: Journalizing Journalize an opening entry
More information204 Reports Included with Version 7.0!
204 Reports Included with Version 7.0! Accounts Payable Aged A/P summary by name Aged A/P summary by number Detailed A/P activity by name Detailed A/P activity by number Detailed aged A/P by name Detailed
More informationThe Statement of Cash Flows Direct Method
23 The Statement of Cash Flows Direct Method DEMONSTRATION PROBLEM The financial statements of Bolero Corporation follow. Copyright Houghton Mifflin Company. All rights reserved. 1 Bolero Corporation Income
More informationFiscal Procedure Sequence page number
Table of Contents Fiscal Procedure Sequence page number Treasurer Responsibilities Maintenance of General Ledger Financial Statements Financial Signature/Review Policy Insurance Protection Payroll Procedures
More informationACCOUNTING AND FINANCIAL REPORTING REGULATION MANUAL
ACCOUNTING AND FINANCIAL REPORTING REGULATION MANUAL STATE BOARD OF ACCOUNTS 302 West Washington Street Room E418 Indianapolis, Indiana 46204-2769 Issued January 2011 Revised April 2012 TABLE OF CONTENTS
More informationThe Accounting Cycle. Cycle. The Accounting Cycle SUA Reference p.10. Overview. The Accounting Cycle. 6 Major Subcycles. Subcycle (transaction cycle):
Everything you ever wanted to know about... The Accounting Overview Review of the manual Accounting 6 Major Subcycles Begin the SUA Transactions Occur Prepare Closing Entries The Accounting SUA Reference
More informationPaper 2: Accounting _Syllabus 2008
TRIAL BALANCE and RECTIFICATION OF ERRORS Practice paper 2 1. Which of these errors does not affect agreement of Trial Balance. a) Errors of principle. b) Complete omission in subsidiary books. c) Compensating
More informationReconciliation of Cash
2. Trial Balance Notes Trial Balance and Reconciliation of Cash Trial balance: w used to confirm that accounts receivable, program expenditures, and cash balance equal amount of funds authorized and should
More informationBank Reconciliations
Professor Authored Problems Intermediate Accounting I Acct 341/541 Bank Reconciliations Problem 95 Simple Bank Reconciliation The Smith Company needs help in constructing a bank reconciliation for July
More information1. Analyze the following T-account in the ledger of Moxy Pool Supply Company
Name: Date: 1. Analyze the following T-account in the ledger of Moxy Pool Supply Company Mdse. Inventory 5,000 400 If $5,000 in the Inventory account represents merchandise purchased from a supplier, we
More informationThe policy and procedural guidelines contained in this handbook are designed to:
BASIC POLICY STATEMENT The Mikva Challenge is committed to responsible financial management. The entire organization including the board of directors, administrators, and staff will work together to make
More informationINTERNAL CONTROL POLICIES
INTERNAL CONTROL POLICIES 2701 Internal Control Policy 2701.1 Addendum Internal Control Standard #1 Payments Cycle 2701.2 Addendum Internal Control Standard #2 Conversion Cycle 2701.3 Addendum Internal
More informationCHECKLIST FOR INTERNAL AUDIT
CHECKLIT FOR INTERNAL AUDIT Client s Name: Nature of Audit:.. Period covered by the Audit:.. INTERNAL CONTROL QUETIONNAIRE (Evaluation of Internal Control) ACCOUNTING FUNCTION: WAGE & PAYROLL / CAH & BANK
More informationINTERNAL ACCOUNTING CONTROLS CHECKLIST FOR NTMA CHAPTERS
P R E C I S I O N INTERNAL ACCOUNTING CONTROLS CHECKLIST FOR NTMA CHAPTERS Presented at NTMA 2004 Annual Convention Palm Springs, CA February 2004 National Tooling & Machining Association 9300 Livingston
More informationGBA 521 Midterm Review Dr. Markelevich
GBA 521 Midterm Review Dr. Markelevich Multiple Choice (3 points for each question) Identify the letter of the choice that best completes the statement or answers the question. Wynn Corp. Wynn Corp. reported
More informationHow To Manage A Corporation
Western Climate Initiative, Inc. Accounting Policies and Procedures Adopted May 8, 2013 WESTERN CLIMATE INITIATIVE, INC ACCOUNTING POLICIES AND PROCEDURES Adopted May 8, 2013 Table of Contents I. Introduction...
More informationA Assets and Other Debits: Code and Definitions 2-A-1. B Liabilities and Other Credits: Code and Definitions 2-B-1
Section: Chapter Contents Date: June 006 Section Page A Assets and Other Debits: Code and Definitions -A-1 B Liabilities and Other Credits: Code and Definitions -B-1 NOTE 1: In order to maintain uniformity
More informationBELLWOOD HOSPITAL DIVISION DIRECTORY OF RECORDS. Financial Services
Financial Services General Records Accounts Payable Financial Statements and Reports Contracts and Agreements Operating Plan and Budget Personal Information Bank Name of the Information: Expense Reports
More informationCHAPTER XII DOUBLE ENTRY ACCOUNTING SYSTEM
12-1 CHAPTER XII DOUBLE ENTRY ACCOUNTING SYSTEM SECTION A - ACCOUNTING BASIS The accounting basis for recording transactions will vary according to the purpose for which each fund is established. Generally,
More informationFlorida A & M University
Florida A & M University AP PROCEDURES 3-8-2013 TABLE OF CONTENTS 1.0 OVERVIEW... 1 2.0 DEFINITIONS... 1 3.0 RESPONSIBILITIES... 2 4.0 GENERAL PROCEDURES... 3 4.1 DEPARTMENTAL FISCAL REPRESENTATIVES...
More informationAudit Guidelines. The Annual Church Audit. by Dan Busby. Key Concepts. Idea! Use this document as a checklist for your annual audit.
The Annual Church Audit by Dan Busby Audit Guidelines Church board members have a long list of responsibilities. Among these is the responsibility for the money that flows through the church. Included
More informationProblems: Set B. Problems: Set B 1
Problems: Set B 1 Problems: Set B P7-1B The Soccer Club decided to sell coupon books as a fund-raising activity. The books allow users to enjoy restaurants, entertainment, and services such as oil changes,
More informationAccounting 201 Comprehensive Practice Exam 2C Page 1
Accounting 201 Comprehensive Practice Exam 2C Page 1 1. A business organized as a corporation a. is not a separate legal entity in most states. b. requires that stockholders be personally liable for the
More informationChecks and Balances Internal Controls. West Virginia State Auditor s Office Chief Inspector Division
Checks and Balances Internal Controls West Virginia State Auditor s Office Chief Inspector Division POP QUIZ Internal Controls Internal Controls The auditor will test the effectiveness of your internal
More informationHow To Read The Financial Results Of 20Xx And 200X
Name SAMPLE Financial Statements December 31, 20XX CPA Accounting Firm Name Table of Contents Page Accountant s Review Report 1 Financial Statements Balance Sheet 2 Income Statement 3 Schedule of General
More informationFINANCE COMMITTEE PROCEDURES. Audit Process. Cash Handling
1 FINANCE COMMITTEE PROCEDURES Audit Process 1. Internal audits are conducted once a year. 2. The bookkeeper will provide the following information: bank statements, prior year vouchers, and access to
More informationArchdiocese of Chicago Parish Self-Assessment Checklist
Self-Assessment Questions 1. Are written Parish Finance Council guidelines and norms defined, documented, and available to all Parish Finance Council members? 2. Are Archdiocesan best practices communicated
More informationAudit Evidence. Chapter 7. 2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 7-1
Audit Evidence Chapter 7 2008 Prentice Hall Business Publishing, Auditing 12/e, Arens/Beasley/Elder 7-1 Learning Objective 1 Contrast audit evidence with evidence used by other professions. 2008 Prentice
More informationTOPIC NO. 20330 TOPIC PETTY CASH December 2008 Table of Contents
Table of Contents Overview... 3 Introduction... 3 Policy... 3 Non-Routine Purchasing... 3 Routine Purchasing... 3 Small Purchases Charge Card... 3 Use of EDI for Repayment... 3 Definitions... 4 Change
More informationThe following figures summarize ways in which dut:es could be segregated with two, three and four people.
The following figures summarize ways in which dut:es could be segregated with two, three and four people. Segregation of Duties- Two people Accountant or other financial personnel 11,,. Rec()rdpl~dges
More informationSAMPLE CONSTRUCTION FINANCIAL STATEMENT
SAMPLE CONSTRUCTION FINANCIAL STATEMENT Construction Contacts: Tim Klimchock, CPA, CCIFP Manager, AEC Industry Group M. Scott Hursh, CPA, CCIFP Principal, AEC Industry Group 1.800.745.8233 Web Site: www.stambaugh-ness.com
More information[LSC Name] Items Needed for Internal Audit [Audited as of Date]
Items Needed for Internal Audit [Audited as of Date] The following items should be available in preparation for your internal audit: 1. General ledger for the last complete fiscal year and year to date
More informationImportant Disclaimer. Copyright Information
Important Disclaimer This checklist is provided to assist churches in fulfilling the requirement of Book of Order provision G-10.0400, 4, d. The Book of Order does not require that the annual review of
More informationRecords Retention Guidelines for Businesses, Individuals & Accounting Firms
Records Retention Guidelines for Businesses, Individuals & Accounting Firms Following are charts devised for individuals, businesses, and accounting firms. These charts may be used as a guideline for most
More informationThe Use of Assertions by Auditor
E. AUDIT EVIDENCE 1. The Use of Assertions by Auditor 2. Audit Procedures 3. The Audit of Specific Items 4. Audit Sampling and Other means of Testing 5. Computer-Assisted Audit Techniques 6. Not-for-Profit
More informationChapter 7 Cash and Receivables
Chapter 7 Cash and Receivables QUESTIONS FOR REVIEW OF KEY TOPICS Question 7-1 Cash equivalents usually include negotiable instruments as well as highly liquid investments that have a maturity date no
More informationReference Document Month-End Closing
Overview Each individual company according to their own business practices establishes month end closing procedures. Typically, a company will create a monthly accounting calendar, which sets the dates
More informationUniversity of California HASTINGS COLLEGE OF THE LAW Office of Fiscal Services
University of California HASTINGS COLLEGE OF THE LAW Office of Fiscal Services Year-End Close Supplement TABLE OF CONTENTS A. OVERVIEW B. DEFINITIONS 1. Accrual Basis of Accounting 2. Accruals 3. Commitments
More informationGreat Aycliffe Town Council. Purchase Ordering and Payment for Goods and Services Policy
Great Aycliffe Town Council Purchase Ordering and Payment for Goods and Services Policy Finance Section April 2013 1.0 Introduction 1.1 This policy sets out the Council s arrangements for ordering, receiving,
More informationMOUNTAIN EQUIPMENT CO-OPERATIVE
Consolidated Financial Statements of MOUNTAIN EQUIPMENT CO-OPERATIVE KPMG LLP PO Box 10426 777 Dunsmuir Street Vancouver BC V7Y 1K3 Canada Telephone (604) 691-3000 Fax (604) 691-3031 Internet www.kpmg.ca
More informationFinancial Statements Years Ended September 30, 2012 and 2011. LB&B Associates Inc.
Financial Statements Years Ended September 30, 2012 and 2011 LB&B Associates Inc. LB&B Associates Inc. Contents Page Report of Independent Auditors 1 Financial Statements Balance Sheets 2 Statements of
More informationPurpose. This accounting policy documents authoritative literature for the accounting treatment of accounts payable and accrued expenses.
1. Title 2. Policy Accounts Payable and Accrued Expenses Sec. 1 Sec. 2 Sec. 3 Sec. 4 Sec. 5 Policy Statement. The accrual basis of accounting should be utilized in measuring financial position and operating
More informationSelf-test Comprehensive Problems II 综 合 自 测 题 II
Self-test Comprehensive Problems II 综 合 自 测 题 II Part One (30%) 1. Give the Chinese/English of the following terms: (5%) subsidiary ledger 统 制 账 户 purchase requisition 现 金 溢 缺 petty cash fund 永 续 盘 存 制
More information