Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Over the past year, it has been determined that there may be some control issues in each of the major transaction cycles. The following is a chart of each cycle with the areas of concern identified.
Transaction Cycles
Areas of Concern
The procurement and payment cycle
There were 4,000 purchase orders that totaled $55 M for raw material. There is concern that not all purchases were completed using formal purchase orders, receipts did not match payment authorizations, and purchase orders were missing.
The capital acquisition and repayment cycle
Two capital projects totaling $2.5 M may have been overspent by $600,000 and may not reflect the reported capital spending.
The sales and cash receipt cycle
There were 15,000 invoices totaling $122 M in sales. Unauthorized discounts applied to invoices, credit terms applied to invoices may be incorrect, and unaccounted for invoice sequence numbering may be present.
The accounting for inventory
There were 6,000 stock keeping units (SKUs) that totaled $22 M. Physical inventories reported inventory losses of $300,000.
Each member of your team should take 1 of the 4 specific transaction cycles and complete the following:
Submit a 1-page chart with the following column headings:
Transaction-Related Audit Objective
Key Internal Control
Common Test of Control
Common Substantive Test of Transactions
In preparation for the year-end audit at Bovar Company, your team will create a presentation to management for its approval. Complete the following:
matrix accounting pays all salaried employees biweekly. overtime pay however is paid in the next biweekly period.
packard company has the following opening account balances in its general and subsidiary ledgers on january 1 and uses
Here are stock market and Treasury bill returns between 1997 and 2001: What was the risk premium on common stock in each year? What was the average risk premium?
problem 3-4aa review of the ledger of d. j. moore company at december 31 2012 produces the following data pertaining to
pets r us sells dog and cat food. its monthly fixed costs average 620000. cat food sales represent 80 of the companys
a four-year investment is expected to produce the cash flows shown below. an investor is willing to pay a price of
A share of common stock just paid a dividend of $3.25 per share. The expected long-run growth rate for this stock is 18%. If investors require a rate of return of 24%, what should the price of the stock be?
what events create permanent differences between accounting income and taxable income? what effect do these events have
wolverine corporation purchased a machine for 132000 on january 1 2008 and depreciated it by the straight-line method
leiker corporation has these accounts at december 31 common stock 11 par 4610 shares issued 50710 paid-in capital in
which of the following transactions is not part of the operating cyclea. purchase of equipment on creditb. purchase
if a company owns more than 20 of the stock of another company and the stock is being held as a long-term investment
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd