What precautions should be taken by the auditor in (a) counting cash on hand and (b) confirming

Question:

What precautions should be taken by the auditor in

(a) counting cash on hand and

(b) confirming bank balances?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Modern Auditing

ISBN: 9780471542834

5th Edition

Authors: Walter Gerry Kell, William C. Boynton, Richard E. Ziegler

See More Books

Question Posted: May 04, 2024 11:01 PM

See More Questions

Toyco, a retail toy chain, honors two bank credit cards and makes daily deposits of credit card sales in two credit card bank accounts (Bank A and Bank B). Each day, Toyco batches its credit card...
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
What precautions should be taken in mechanical joining of dissimilar metals? Why?
An inclined manometer is a useful device for measuring small pressure differences. The formula given in Section 3.4 for the pressure difference in terms of the liquid-level difference h remains...
Sanders' Prime Time Company has annual credit sales of $1,800,000 and accounts receivable of $210,000. Compute the value of the average collection period.
Hobie and Colleen designed and developed a smartphone app called Do It. Do It is a game in which players cooperate rather than compete to complete a task, such as draw a picture, play a tune, or...
Phil Scranton is the auditor-in-charge of an audit of corporate research and development of Faecit Metals Company. Phil and his team of two staff auditors have just completed their exit conference...
Azen Corporation issued $400,000, 7%, 20-year bonds on January 1, 2012, for $360,727. This price resulted in an effective-interest rate of 8% on the bonds. Interest is payable annually on January 1....
Based on this information, create and solve a ratio analysis: In their most recent discussion with VP Finance, they were informed that total sales next year ( 2 0 2 2 ) was expected to be $ 1 , 5 0 0...
Identify the five types of information included in a standard bank confirmation.
What audit procedures are required to verify the (a) existence or occurrence and (b) completeness of cash balances?
How can both the sales manager and credit manager learn to appreciate each others responsibilities? The current chapter in your textbook has pointed out that careful handling of accounts receivable...
The Coffee Place, the local coffee shop where you work, has now developed a gluten-free menu at the request of customers. In a group, list ways The Coffee Place can get this information to customers....
As they try to undo the harm from YouTube drinking videos starring their institutions, school officials are making their own YouTube videos. Some, such as deans lecturing on course offerings, are...
The letter in Figure 9.10 was sent to American households after the U.S. Congress passed a stimulus package in May 2020. Critique it in small groups. Here are some questions to get you started: 1....
Your boss has asked you to draft a companywide email that explains a change in policy. Previously, the company would buy a cake for each employees birthday and there would be a small celebration in...
As director of customer service at Cest Bon, an upscale furniture store, you manage the stores credit. Today you are going to reject an application from Frank Steele. Although his income is fairly...
A bag of cement of weight Fg hangs from three wires as shown in Figure P5.18. Two of the wires make angles 1 and 2 with the horizontal. If the system is in equilibrium, show that the tension in the...
The bookkeeper for Riley, Inc., made the following errors: a. A cash purchase of supplies of $357 was recorded as a debit to Supplies for $375 and a credit to Cash of $375. b. A cash sale of $3,154...
In Exercises 19-36, use synthetic division to divide. 19. (3x- 17x + 15x - 25) (x-5) 20. (5x + 18x + 7x 6) (x + 3) 21. (4x- 9x+8x218) (x + 2) 22. (9x-16x18x2 + 32) + (x-2) 23. (-x + 75x250) + (x +...
Ike's Dog Kennel provides day and overnight care for all pets. The following account balances relate to the Company's October 31, 2021 financial statements: Maintenance expense Equipment $6,000...
Aracel Engineering completed the following transactions in the month of June. a. J. Aracel, the owner, invested $215,000 cash, office equipment with a value of $5,100, and $73,000 of drafting...

What precautions should be taken by the auditor in (a) counting cash on hand and (b) confirming

Question:

Step by Step Answer:

a Precautions when counting cash on hand 1 Segregation of Duties The auditor should ensure that the individual responsible for counting the cash is di...View the full answer

Modern Auditing

Students also viewed these Business questions