Frozen Taste Ice Cream (FTIC) is a manufacturer of ice cream It purchases its raw material supplies from a number of vendors The process of purchasing starts with a Purchase Order sent to the vendor Once FTIC receives the raw material from the vendor, they prepare a Receiving Report FTIC receives an Invoice from each vendor for each of the purchases Once an Invoice is received, a Voucher Packet is prepared that includes the related Purchase Order, Receiving Report, and Invoice, and the Voucher Packet is sent for approval for payment Once the payment is approved, the Voucher Packet is registered in the Voucher Register and a Check is sent to the Vendor for the approved amount The payment is then recorded in the Cash Disbursement Journal FTIC receives a Bank Statement from North Bank, where FTIC has an account, at the end of every month The flowchart in the following shows the cash disbursement process at FTIC You are provided with a series of transactions recorded in the Voucher Register and the Cash Disbursement Journal In addition, the related Bank Transactions are provided in a partial Bank Statement from North Bank Requirements Vouch each item from the Cash Disbursement Journal to the Voucher Register and identify any violation of the management assertion of Occurrence Use the Bank Statement to perform additional verification of your audit test Hint Any transaction recorded in the journal that did not take place is a violation of Occurrence Trace each item from the Voucher Register to the Cash Disbursement and identify any violation of the management assertion of Completeness Use the Bank Statement to perform additional verification of your audit test Hint Any transaction that took place but was not recorded in the journal is a violation of Completeness As you are Vouching and Tracing, keep an eye for accuracy and identify any violation of the management assertion of Accuracy Hint Any amount that was recorded incorrectly is a violation of Accuracy Document your errors in the Error Documentation Worksheet provided Hint Follow the three examples provided in the Worksheet Once you are done with the process, go to Black Board and answer a set of True False questions related to your findings Hint Use your error documentation worksheet to answer the questions Rules of Engagement You can use your notes, slides, textbook, and the internet You cannot discuss the project with other students or anyone other than your course instructor You can ask the instructor questions to get clarifications on the assignment requirements, but not to verify your findings Cash Disbursement Flow Chart Frozen Taste Ice Cream Invoice Purchase Order Receiving Report Voucher Packet Voucher Register Payment Approval Check Cash Disbursement Journal Frozen Taste Ice Cream Company Voucher Register Date Voucher Packet Number Purchase Order Number Purchase Order Amount Receiving Report Number Receiving Report Amount Invoice Number Invoice Amount Vendor Name Amount of Payment Approved 7Feb 1231 701 $9,231 345 $9,231 9003 $9,231 Fresh Dairy $9,231 7Feb 1232 702 $3,459 346 $3,459 7007 $3,459 True Flavors $3,459 7Feb 1233 703 $5,837 347 $5,837 7009 $5,837 True Flavors $5,837 7Feb 1234 704 $3,658 348 $3,658 6501 $3,658 Fine Sugar $3,658 7Feb 1236 706 $9,782 350 $9,782 7034 $9,782 True Flavors $9,782 8Feb 1237 707 $7,868 351 $7,868 9015 $7,868 Fresh Dairy $7,868 8Feb 1238 708 $5,487 352 $5,487 10045 $5,487 Tree Nuts $5,487 8Feb 1239 709 $9,724 353 $9,724 6634 $9,724 Fine Sugar $9,724 8Feb 1241 711 $2,324 355 $2,324 7058 $2,324 True Flavors $2,324 9Feb 1242 712 $9,758 356 $9,758 6699 $9,758 Fine Sugar $9,758 9Feb 1243 713 $5,765 357 $5,765 9023 $5,765 Fresh Dairy $5,765 9Feb 1244 714 $4,508 358 $4,508 7015 $4,508 Fine Sugar $4,508 9Feb 1245 715 $7,527 359 $7,527 2656 $7,527 Pure Honey $7,527 Frozen Taste Ice Cream Company Cash Disbursement Journal Date Check No Payee GL Account Voucher Packet Number Amount 8Feb 1001 Fresh Dairy Milk Inventory 1231 $9,231 8Feb 1002 True Flavors Ice Cream Flavor 1232 $3,559 8Feb 1003 True Flavors Ice Cream Flavor 1233 $5,837 8Feb 1004 Fine Sugar Other Ingredient 1234 $3,658 8Feb 1005 Pure Honey Other Ingredient 1235 $5,084 9Feb 1006 True Flavors Ice Cream Flavor 1236 $9,782 9Feb 1008 Tree Nuts Gourmet Item 1238 $5,487 9Feb 1009 Fine Sugar Other Ingredient 1239 $9,724 10Feb 1010 Tree Nuts Gourmet Item 1240 $4,553 10Feb 1011 True Flavors Ice Cream Flavor 1241 $2,324 10Feb 1013 Fresh Dairy Milk Inventory 1243 $5,765 10Feb 1014 Fine Sugar Other Ingredient 1244 $5,508 10Feb 1015 Pure Honey Other Ingredient 1245 $7,527 North Bank February Statement Frozen Taste Ice Cream Company Account Number 0004877857957 Debits to Account Check No Date Amount 1001 9Feb $9,231 1002 9Feb $3,459 1006 9Feb $9,782 1003 10Feb $5,837 1004 10Feb $3,658 1010 10Feb $4,553 1005 11Feb $5,084 1008 11Feb $5,487 1011 11Feb $2,324 1009 12Feb $9,724 1013 14Feb $5,765 1014 16Feb $4,508 1015 17Feb $7,527 Error Documentation Worksheet Error Management Assertion Violated Voucher Packet XXXX Paid but no PO, RR, or Invoice Found Occurrence Check Number XXXX for Voucher Packet Number XXXX approved and paid for $X,XXX but recorded in the cash disbursement journal for $Y,YYY Accuracy Payment Approved for Voucher Packet XXXX but no cash disbursement recorded No record of payment in the bank statement

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Frozen Taste Ice Cream (FTIC) is a manufacturer of ice cream. It purchases its raw material supplies from a number of vendors. The process of

Frozen Taste Ice Cream (FTIC) is a manufacturer of ice cream. It purchases its raw material supplies from a number of vendors. The process of purchasing starts with a Purchase Order sent to the vendor. Once FTIC receives the raw material from the vendor, they prepare a Receiving Report. FTIC receives an Invoice from each vendor for each of the purchases. Once an Invoice is received, a Voucher Packet is prepared that includes the related Purchase Order, Receiving Report, and Invoice, and the Voucher Packet is sent for approval for payment. Once the payment is approved, the Voucher Packet is registered in the Voucher Register and a Check is sent to the Vendor for the approved amount. The payment is then recorded in the Cash Disbursement Journal. FTIC receives a Bank Statement from North Bank, where FTIC has an account, at the end of every month. The flowchart in the following shows the cash disbursement process at FTIC.

You are provided with a series of transactions recorded in the Voucher Register and the Cash Disbursement Journal. In addition, the related Bank Transactions are provided in a partial Bank Statement from North Bank.

Requirements:

Vouch each item from the Cash Disbursement Journal to the Voucher Register and identify any violation of the management assertion of Occurrence. Use the Bank Statement to perform additional verification of your audit test. [Hint: Any transaction recorded in the journal that did not take place is a violation of Occurrence.]
Trace each item from the Voucher Register to the Cash Disbursement and identify any violation of the management assertion of Completeness. Use the Bank Statement to perform additional verification of your audit test. [Hint: Any transaction that took place but was not recorded in the journal is a violation of Completeness.]
As you are Vouching and Tracing, keep an eye for accuracy and identify any violation of the management assertion of Accuracy. [Hint: Any amount that was recorded incorrectly is a violation of Accuracy.]
Document your errors in the Error Documentation Worksheet provided. [Hint: Follow the three examples provided in the Worksheet.]
Once you are done with the process, go to Black Board and answer a set of True/False questions related to your findings. [Hint: Use your error documentation worksheet to answer the questions.]

Rules of Engagement:

You can use your notes, slides, textbook, and the internet.
You cannot discuss the project with other students or anyone other than your course instructor.
You can ask the instructor questions to get clarifications on the assignment requirements, but not

to verify your findings.

Cash Disbursement Flow Chart Frozen Taste

Ice Cream

Invoice

Purchase Order

Receiving Report

Voucher Packet


	Voucher Register

Payment Approval

Check


	Cash Disbursement Journal

Frozen Taste Ice Cream Company Voucher Register

Date	Voucher Packet Number	Purchase Order Number	Purchase Order Amount	Receiving Report Number	Receiving Report Amount	Invoice Number	Invoice Amount	Vendor Name	Amount of Payment Approved
7Feb	1231	701	$9,231	345	$9,231	9003	$9,231	Fresh Dairy	$9,231
7Feb	1232	702	$3,459	346	$3,459	7007	$3,459	True Flavors	$3,459
7Feb	1233	703	$5,837	347	$5,837	7009	$5,837	True Flavors	$5,837
7Feb	1234	704	$3,658	348	$3,658	6501	$3,658	Fine Sugar	$3,658
7Feb	1236	706	$9,782	350	$9,782	7034	$9,782	True Flavors	$9,782
8Feb	1237	707	$7,868	351	$7,868	9015	$7,868	Fresh Dairy	$7,868
8Feb	1238	708	$5,487	352	$5,487	10045	$5,487	Tree Nuts	$5,487
8Feb	1239	709	$9,724	353	$9,724	6634	$9,724	Fine Sugar	$9,724
8Feb	1241	711	$2,324	355	$2,324	7058	$2,324	True Flavors	$2,324
9Feb	1242	712	$9,758	356	$9,758	6699	$9,758	Fine Sugar	$9,758
9Feb	1243	713	$5,765	357	$5,765	9023	$5,765	Fresh Dairy	$5,765
9Feb	1244	714	$4,508	358	$4,508	7015	$4,508	Fine Sugar	$4,508
9Feb	1245	715	$7,527	359	$7,527	2656	$7,527	Pure Honey	$7,527

Frozen Taste Ice Cream Company Cash Disbursement Journal

Date	Check No.	Payee	GL Account	Voucher Packet Number	Amount
8Feb	1001	Fresh Dairy	Milk Inventory	1231	$9,231
8Feb	1002	True Flavors	Ice Cream Flavor	1232	$3,559
8Feb	1003	True Flavors	Ice Cream Flavor	1233	$5,837
8Feb	1004	Fine Sugar	Other Ingredient	1234	$3,658
8Feb	1005	Pure Honey	Other Ingredient	1235	$5,084
9Feb	1006	True Flavors	Ice Cream Flavor	1236	$9,782
9Feb	1008	Tree Nuts	Gourmet Item	1238	$5,487
9Feb	1009	Fine Sugar	Other Ingredient	1239	$9,724
10Feb	1010	Tree Nuts	Gourmet Item	1240	$4,553
10Feb	1011	True Flavors	Ice Cream Flavor	1241	$2,324
10Feb	1013	Fresh Dairy	Milk Inventory	1243	$5,765
10Feb	1014	Fine Sugar	Other Ingredient	1244	$5,508
10Feb	1015	Pure Honey	Other Ingredient	1245	$7,527

North Bank
February Statement
Frozen Taste Ice Cream Company
Account Number 0004877857957

Debits to Account
Check No.	Date	Amount
1001	9Feb	$9,231
1002	9Feb	$3,459
1006	9Feb	$9,782
1003	10Feb	$5,837
1004	10Feb	$3,658
1010	10Feb	$4,553
1005	11Feb	$5,084
1008	11Feb	$5,487
1011	11Feb	$2,324
1009	12Feb	$9,724
1013	14Feb	$5,765
1014	16Feb	$4,508
1015	17Feb	$7,527

Error Documentation Worksheet
Error	Management Assertion Violated
Voucher Packet XXXX Paid but no PO, RR, or Invoice Found	Occurrence
Check Number XXXX for Voucher Packet Number XXXX approved and paid for $X,XXX but recorded in the cash disbursement journal for $Y,YYY	Accuracy
Payment Approved for Voucher Packet XXXX but no cash disbursement recorded. No record of payment in the bank statement