Homework Answers
1. Physical control over assets and records
2. Physical control over assets and records
3. Proper authorization
4. Adequate documents or records
5. Physical control over assets and records
6. Separation of duties
7. Adequate documents or records
8. Independent checks on performance
9. Proper authorization
10. Physical control over assets and records
Add Answer to:
Requirement a. For each control, identify which element of the five categories of control activities is...
Requirement c. For each control, identify an audit procedure that could be used to test the...
Requirement c. For each control, identify an audit procedure that could be used to test the control for effectiveness. (Audit procedures may be used more than once.) (Click the icon to view the audit procedures to test controls.) 1 Test of Control Internal Controls Test of Control 1. Approved purchase orders are required for all acquisitions of goods. Prenumbered receiving reports are prepared as support for acquisitions and 2. numerically accounted for. Dates on receiving reports are compared with vendors'...
Requirement b. For each control, state which transaction-related audit objective(s) is (are) applicable. Transaction-related Audit Internal...
Requirement b. For each control, state which transaction-related audit objective(s) is (are) applicable. Transaction-related Audit Internal Controls Objective(s) 1. Approved purchase orders are required for all acquisitions of goods. Prenumbered receiving reports are prepared as support for acquisitions and 2. numerically accounted for. Accuracy Dates on receiving reports are compared with vendors' invoices before entry into the 3. acquisitions journal. Classification Completeness 4. Account classifications are reviewed by someone other than the preparer. Occurrence 5. Vendors' invoices are recalculated before...
Requirement d. For each control, identify a likely misstatement, assuming that the control does not exist or is not fun...
Requirement d. For each control, identify a likely misstatement, assuming that the control does not exist or is not functioning. (Possible misstatements may be used more than once.) (Click the icon to view the possible misstatements.) Possible Misstatements Possible Misstatement Internal Controls j. A misstatement in calculation of a vendor's invoice. 1. Approved purchase orders are required for all acquisitions of goods. Prenumbered receiving reports are prepared as support for acquisitions and 2. numerically accounted for. Dates on receiving reports...
Requirement e. For each likely misstatement, identify a substantive audit procedure to determine whether the misstatement...
Requirement e. For each likely misstatement, identify a substantive audit procedure to determine whether the misstatement exists. (Substantive audit procedures may be used more than once.) ) (Click the icon to view the substantive audit procedures.) Substantive Audit Substantive Audit Procedures Internal Controls Procedure 1. Approved purchase orders are required for all acquisitions of goods. Prenumbered receiving reports are prepared as support for acquisitions and 2. numerically accounted for. Dates on receiving reports are compared with vendors' invoices before entry...
Requirement a. For each internal control, identify the type(s) of specific control activity (or activities) to...
Requirement a. For each internal control, identify the type(s) of specific control activity (or activities) to which it applies (such as adequate documents and records or physical control over assets and records). Internal control Control activity(ies) Human resource policies require an investigation of an employment application from new employees. Investigation includes checking the 1. employee's background, former employers, and references. Approval of department head or foreman on time records is required 2. before preparing payroll. Adequate documents and records All...
Requirement b. Identify the type of evidence for each procedure. Procedure Type of Evidence Discuss the...
Requirement b. Identify the type of evidence for each procedure. Procedure Type of Evidence Discuss the duties of the cash disbursements clerk with him and observe whether he has responsibility for handling cash or preparing the bank 1. reconciliation. Examine the internal auditor's initials on monthly bank reconciliations as 2. an indication of whether they have been reviewed. Account for a sequence of checks in the cash disbursements journal to 3. determine whether any have been omitted. Examine vendors' invoices...
Requirement a. Indicate whether each procedure is a test of control, substantive test of transactions, substantive...
Requirement a. Indicate whether each procedure is a test of control, substantive test of transactions, substantive analytical procedure, or a test of details of balances. Type of Test Procedure Discuss the duties of the cash disbursements clerk with him and observe whether 1. he has responsibility for handling cash or preparing the bank reconciliation. Examine the internal auditor's initials on monthly bank reconciliations as an 2. indication of whether they have been reviewed. Account for a sequence of checks in...
18-26 (Objectives 18-3, 18-4) In testing cash disbursements for the Jay Klein Company, you obtained an...
18-26 (Objectives 18-3, 18-4) 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 agent who is responsible for ordering goods and a separate receiving department that counts the goods when they are received and...
18-26 (Objectives 18-3, 18-4) In testing cash disbursements for the Jay Klein Company, you obtained an...
18-26 (Objectives 18-3, 18-4) 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 agent who is responsible for ordering goods and a separate receiving department that counts the goods when they are received and...
a. Identify whether each of 1 through 7 is a control test deviation, a monetary misstatement,...
a. Identify whether each of 1 through 7 is a control test deviation, a monetary misstatement, or both. b. For each exception, identify which transaction-related audit objective was not met. c. What is the audit importance of each of these exceptions? d. What follow-up procedures would you use to determine more about the nature of each exception? e. How would each of these exceptions affect the rest of your audit? Be specific. f. Identify internal controls that should have prevented...
Requirement c. For each control, identify an audit procedure that could be used to test the control for effectiveness. (Audit procedures may be used more than once.) (Click the icon to view the audit procedures to test controls.) 1 Test of Control Internal Controls Test of Control 1. Approved purchase orders are required for all acquisitions of goods. Prenumbered receiving reports are prepared as support for acquisitions and 2. numerically accounted for. Dates on receiving reports are compared with vendors'...
Requirement b. For each control, state which transaction-related audit objective(s) is (are) applicable. Transaction-related Audit Internal Controls Objective(s) 1. Approved purchase orders are required for all acquisitions of goods. Prenumbered receiving reports are prepared as support for acquisitions and 2. numerically accounted for. Accuracy Dates on receiving reports are compared with vendors' invoices before entry into the 3. acquisitions journal. Classification Completeness 4. Account classifications are reviewed by someone other than the preparer. Occurrence 5. Vendors' invoices are recalculated before...
Requirement d. For each control, identify a likely misstatement, assuming that the control does not exist or is not functioning. (Possible misstatements may be used more than once.) (Click the icon to view the possible misstatements.) Possible Misstatements Possible Misstatement Internal Controls j. A misstatement in calculation of a vendor's invoice. 1. Approved purchase orders are required for all acquisitions of goods. Prenumbered receiving reports are prepared as support for acquisitions and 2. numerically accounted for. Dates on receiving reports...
Requirement e. For each likely misstatement, identify a substantive audit procedure to determine whether the misstatement exists. (Substantive audit procedures may be used more than once.) ) (Click the icon to view the substantive audit procedures.) Substantive Audit Substantive Audit Procedures Internal Controls Procedure 1. Approved purchase orders are required for all acquisitions of goods. Prenumbered receiving reports are prepared as support for acquisitions and 2. numerically accounted for. Dates on receiving reports are compared with vendors' invoices before entry...
Requirement a. For each internal control, identify the type(s) of specific control activity (or activities) to which it applies (such as adequate documents and records or physical control over assets and records). Internal control Control activity(ies) Human resource policies require an investigation of an employment application from new employees. Investigation includes checking the 1. employee's background, former employers, and references. Approval of department head or foreman on time records is required 2. before preparing payroll. Adequate documents and records All...
Requirement b. Identify the type of evidence for each procedure. Procedure Type of Evidence Discuss the duties of the cash disbursements clerk with him and observe whether he has responsibility for handling cash or preparing the bank 1. reconciliation. Examine the internal auditor's initials on monthly bank reconciliations as 2. an indication of whether they have been reviewed. Account for a sequence of checks in the cash disbursements journal to 3. determine whether any have been omitted. Examine vendors' invoices...
Requirement a. Indicate whether each procedure is a test of control, substantive test of transactions, substantive analytical procedure, or a test of details of balances. Type of Test Procedure Discuss the duties of the cash disbursements clerk with him and observe whether 1. he has responsibility for handling cash or preparing the bank reconciliation. Examine the internal auditor's initials on monthly bank reconciliations as an 2. indication of whether they have been reviewed. Account for a sequence of checks in...
Most questions answered within 3 hours.
-
There are two identical, positively charged conducting spheres
fixed in space. The spheres are 39.4 cm...
asked 35 seconds ago -
It has been stated that the average life span of a man is 75
years. A...
asked 13 minutes ago -
At a certain harbor, the tides cause the ocean surface to rise
and fall a distance...
asked 11 minutes ago -
What is the molar volume that an ideal gas would occupy at
20.0°C and 1.50 atm?...
asked 15 minutes ago -
What are the four types of rulings that the FTC might enact in
response to claims...
asked 16 minutes ago -
Direct Labor Variances
Bellingham Company produces a product that requires 10 standard
hours per unit at...
asked 24 minutes ago -
Affirmative action falls within the realm of what type of
justice? Explain.
asked 29 minutes ago -
Which criminal laws are most relevant for security
professionals?
asked 30 minutes ago -
Discuss one or more criticisms of the way(s) technology has
negatively affected society, families, schools, or...
asked 33 minutes ago -
What are the two most common means used to authenticate the
identity of electronic communications?
Digital...
asked 38 minutes ago -
Which characteristics are shared by surfactants and fatty
amphiphiles (such as cetyl alcohol)?
I Surface active...
asked 42 minutes ago -
A 7,000-seat theater is interested in determining whether there
is a difference in attendance between shows...
asked 47 minutes ago