Question: Suppose you selected a sample of customers accounts receivable and
Suppose you selected a sample of customers’ accounts receivable and wanted to find supporting evidence for the entries in the accounts. Where would you go to vouch the debit entries? What would you expect to find? Where would you go to vouch the credit entries? What would you expect to find? What assertions are you finding evidence about?
Relevant QuestionsWhat specific control policies and procedures (in addition to separation of duties and responsibilities) should be in place and operating in control structure governing revenue recognition and cash accounting?List the information an auditor should ask for in a standard bank confirmation sent to an auditee’s bank.Why is controlled access to computer programs and master files (such as credit files and price lists) important in a control environment? What feature(s) of a cash receipts internal control system would be expected to prevent the cash receipts journal and recorded cash sales from reflecting more than the amount shown on the daily deposit slip? Velma Inc. is a very modern company that strives to be paperless in all its administrative functions.Velma has arranged with its bank to receive all its banking transaction information online, through the bank’s online ...
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