You are working on the audit of Chip Ltd and have completed your review of controls...

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You are working on the audit of Chip Ltd and have completed your review of controls over cash receipts. You have noted the following controls: Control 1: Handling of cash is entirely separate from the accounting department. Control 2: Before the accounting department posts sales invoices to the accounts receivable master file, cash receipts are matched to specific sales invoices. Control 3: The accounting department have a procedure whereby all recorded cash receipts are independently checked to ensure they are recorded correctly. Control 4: Cash is deposited every day at the bank. Required For each of the four (4) Controls' above: Identify the assertion(s) that this control will have an effect on in the financial report; AND provide an example of a procedure that could be used to test each control. You are working on the audit of Chip Ltd and have completed your review of controls over cash receipts. You have noted the following controls: Control 1: Handling of cash is entirely separate from the accounting department. Control 2: Before the accounting department posts sales invoices to the accounts receivable master file, cash receipts are matched to specific sales invoices. Control 3: The accounting department have a procedure whereby all recorded cash receipts are independently checked to ensure they are recorded correctly. Control 4: Cash is deposited every day at the bank. Required For each of the four (4) Controls' above: Identify the assertion(s) that this control will have an effect on in the financial report; AND provide an example of a procedure that could be used to test each control.

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Control 1 Segregation of responsibilities for cash collection and accounting department ensures that ... View the full answer