(a) Alpha Ltd has a reconciliation problem. The amount of cash receipted and banked by

the cashier does not seem to agree with the amount allocated against open invoices

in the accounts receivable customer records. Alpha Ltd seems to have good controls

it separates the receipting and recording of cash, and it regularly conducts a

reconciliation.

Required:

What documentation should you examine in order to investigate this problem?

(b) Beta Ltd has a reconciliation problem. The amount of new goods booked into

inventory records by the warehouse staff does not always seem to match with the

amount of goods recorded as received by the goods receiving staff. Beta Ltd seems

to have good controls, it has separated the receiving and warehousing of goods, and

it regularly conducts ad hoc duplicate counts of inventory items received.

The senior auditor of Beta Ltd has identified several internal controls that could be

missing.

Required:

Explain what the auditor should do in order to further investigate this problem

including what audit techniques could help the auditor.

(c) Gamma Ltd has a reconciliation problem. The bank reconciliation officer is unable to

reconcile the cash at bank value recorded in the general ledger account with the

cash at bank balance disclosed on the bank statements. Gamma Ltd seems to have

good controls; it has separated all cash handling and recording functions from the

bank reconciliation function, and it prepares a bank reconciliation on a weekly basis.

Required:

What documentation would you examine in order to investigate this problem?