Question: An assistant auditor received the following instructions from her supervisor
An assistant auditor received the following instructions from her supervisor: “Here is a cutoff bank statement covering the first seven business days of January. Compare the paid checks returned with the statement and dated December 31 or earlier with the list of checks outstanding at December 31.” What type of fraud might this audit procedure bring to light? Explain
Answer to relevant Questions“When auditors are verifying a client’s bank reconciliation, they are particularly concerned with the possibility that the list of outstanding checks may include a nonexistent or fictitious check, and they also are ...During your audit of Miles Company, you prepared the following bank transfer schedule:a. Describe the purpose of a bank transfer schedule.b. Identify those transfers that should be investigated and explain thereason.During your audit of Carla Pang Inc. you prepared the following bank transfer schedule.Fill out the table below indicating the most likely situation as it relates to cash at year-end.Indicate the situation using one of the ...On October 21, Rand & Brink, a CPA firm, was retained by Suncraft Appliance Corporation to perform an audit for the year ended December 31. A month later, James Minor, president of the corporation, invited the CPA firm’s ...As indicated on the control risk assessment working paper on page 490, the auditors identified two weaknesses in internal control over the revenue cycle of KCN. Describe the implications of each of the two weaknesses in ...
Post your question