What 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?
Answer to relevant QuestionsWhat is a walk-through of a sales transaction? How can the walk-through work complement the use of an internal control questionnaire?Distinguish between positive and negative confirmations. Under what conditions would you expect each type of confirmation to be appropriate?Why is it a control weakness if the same employee can authorize inventory transfers and record accounts receivable entries? Is it easier to send the cash and cheques to the accountants so that they can enter accurately the ...With reference to the Audit 11.3 case, how would an understanding of the business and management reporting system have contributed to discovery of the open cash receipts journal cutoff error?Taylor, a PA, has been engaged to audit the financial statements of University Books Incorporated. University Books maintains a large, revolving cash fund exclusively for the purpose of buying used books from students for ...
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