Professional Documents
Culture Documents
ERGUIZA, MICAELA P.
PENA, CLYDE IAN BRETT C.
CASE 2
1. Prepare a bank transfer schedule to determine whether cash is improperly
included in to two accounts.
2. Compare the cleared checks to the year-end bank reconciliation to identify
checks that were not mailed until after the first week of the subsequent year
because most of those checks will not be returned with the cut- off bank
statement and will appear to remain outstanding on an abnormally long
period of time.
3. Among the terms confirmed for such borrowing arrangement will be
information on liens.
4. A reply to the second request or information from the credit agency may
confirm the existence of the new customer. Examine the shipping documents
where the goods were shipped and to which party.
5. Observe the payroll check distribution on a surprise basis.
6. Vouch data in the payroll register to document authorized pay rates in which
an employee is earning income at a rate that differs from the authorized rate.
7. Compare the details of the cash receipts journal to the details on the daily
deposit slips.
8. The lack of supporting documents and receiving reports will alert the auditor
to the problems.
9. Scan the debits to the fixed asset accounts and vouch selected amounts that
will reveal repairs that have improperly been capitalized.
10.
Compare the cash receipts journal entries with the corresponding daily
deposit slips. Confirm the entity's accounts receivable on a surprise basis at
an interim date.
11.
Make a bank transfer schedule.
12.
Confirm the entity's accounts receivable on a surprise basis at an
interim date. Examine the shipping documents to verify delivery of the
merchandise to the customer with the receivable.
CASE 3
a. Dianne should find in the audit documentation a planning memo describing the
clients inventory-taking plan, and notes about the auditors first-hand
observation of the instructions being given to counters, along with a memo
about the auditors observation of the counting. The memo will tell about the
supervision of the audit staff, and the audit documentation of test counts
would show the review signatures of the supervising auditors.
b. The audit staff should perform the following substantive audit procedures to
verify the assertions of existence and completeness of the inventories at year
end: