Question: a. Which voucher packages, if any, are recorded in the wrong accounting period? Prepare an adjusting entry to correct the financial statements for the year

a. Which voucher packages, if any, are recorded in the wrong accounting period? Prepare an adjusting entry to correct the financial statements for the year ended June 30, 2016. Assume Broughton uses a perpetual inventory system and all purchases are inventory items.

b. Assume the receiving clerk accidentally wrote June 30 on receiving reports 7280 through 7282. Explain how that will affect the correctness of the financial statements. How will you, as an auditor, discover that error?

c. Describe, in general terms, the audit procedures you would follow in making sure that cutoff for purchases is accurate at the balance sheet date. d. Identify internal controls that will reduce the likelihood of cutoff misstatements related to purchases

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Answer a Vouchers 2528 and 2531 were incorrectly included in the June 2016 acquisitions journal The ... View full answer

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