What are the primary functions that should be segregated in the production process?
Answer to relevant QuestionsEvaluate the following statement made by an auditing student: “I do not understand cost accounting; therefore, I want to get a job with an auditing firm where I will only have to know financial accounting.” Describe a walk-through of the payroll transaction flow from hiring authorization to payroll cheque disbursement. What document copies would be collected? Why might an auditor conduct a surprise observation of a payroll distribution? What should be observed? What functional responsibilities are associated with the payroll process? The diagram in Exhibit EP13-3 describes several cost accounting test of control procedures. It shows the direction of the tests, leading from samples of cost accounting analyses, management reports, and the general ledger to ...
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