Assume that you are auditing Company XYZ and you were given the prepaid insurance schedule as the internally prepared workpaper by the company's controller .

a Use tick marks on the schedule to indicate the audit procedures you would have performed to prepaid insurance.

b Prepare an audit program to be used for prepaid expenses.Be sure that you list the assertions.

c Prepare the internal control questionnaire that to be used for the audit of prepaid expenses.

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INSURER KAYE INSURANCE NYOCH HOSTIN TRAVELERS INSURANCE FIRST INSURANCE MARSHALL & STERLING POLICY NUMBER TERM TERM BEGINS EXPIRES 10231/01 1051/02 LIABLITY 15/02 10/31/02 1031/03 LIABILITY 11/26832 11/25/03 LIABILITY 2/17/01 1/31/07 PROPERTY 3/15/02 5/31/03 PROPERTY 4/1/002 6/11/02 3/15/02 SO1702 PROPERTY 771002 PROPERTY PREPAID INSURANCE 12/01/02 7/1/02 7/1/02 PROPERTY 7/1/03 PROPERTY 7/1/03 PROPERTY 771832 12/31/00 PROPERTY W2402 COVERAGE TYPE S31R PROPERTY 11/7/7/02 924/03 FLOOD 11/7/03 FLOOD 1/15/00 AUTOMOBI 1/15/01 1/15/00 AUTOMOBILE 1/15/02 AMOUNT 12/31/01 AT BEGIN OF YEAR 50.300.00 10.371.99 5,540.70 PREMIUM PO DURING CHARGE TO EXPENSE THE YEAR DURING YR 245,248 10 292,950.00 70,350 00 144, 344 42 060 00 91.133 25 29 953 80 4,267.00 132,000.00 57,000.00 419.500.00 11,304.00 3,016.00 ON DE 6,057 16 48,625.00 5,862.50 50,300.00 90,329 30 42,000.00 91,133.26 29,063 80 4,267.00 65,000.00 26,500.00 419,500.00 3,768 00 10 371 0 503.66 20 BC 5,561.56 5.540 70 12/31/02 PREPAID AT END OF YEAR 244, 125.00 64,467.50 66,000.00 7.536.00 505.60 311 456 70 1,303,900.00 1,153.642.50 461,782.14 INSURER KAYE INSURANCE NYOCH HOSTIN TRAVELERS INSURANCE FIRST INSURANCE MARSHALL & STERLING POLICY NUMBER TERM TERM BEGINS EXPIRES 10231/01 1051/02 LIABLITY 15/02 10/31/02 1031/03 LIABILITY 11/26832 11/25/03 LIABILITY 2/17/01 1/31/07 PROPERTY 3/15/02 5/31/03 PROPERTY 4/1/002 6/11/02 3/15/02 SO1702 PROPERTY 771002 PROPERTY PREPAID INSURANCE 12/01/02 7/1/02 7/1/02 PROPERTY 7/1/03 PROPERTY 7/1/03 PROPERTY 771832 12/31/00 PROPERTY W2402 COVERAGE TYPE S31R PROPERTY 11/7/7/02 924/03 FLOOD 11/7/03 FLOOD 1/15/00 AUTOMOBI 1/15/01 1/15/00 AUTOMOBILE 1/15/02 AMOUNT 12/31/01 AT BEGIN OF YEAR 50.300.00 10.371.99 5,540.70 PREMIUM PO DURING CHARGE TO EXPENSE THE YEAR DURING YR 245,248 10 292,950.00 70,350 00 144, 344 42 060 00 91.133 25 29 953 80 4,267.00 132,000.00 57,000.00 419.500.00 11,304.00 3,016.00 ON DE 6,057 16 48,625.00 5,862.50 50,300.00 90,329 30 42,000.00 91,133.26 29,063 80 4,267.00 65,000.00 26,500.00 419,500.00 3,768 00 10 371 0 503.66 20 BC 5,561.56 5.540 70 12/31/02 PREPAID AT END OF YEAR 244, 125.00 64,467.50 66,000.00 7.536.00 505.60 311 456 70 1,303,900.00 1,153.642.50 461,782.14

Answer rating: 100% (QA)

A Audit Procedure for Prepaid Insurance Auditing prepaid expenses One of the major differences is the materiality of the account balances Prepaid expenses deferred charges and intangible assets are no... View the full answer