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0-6 10-45. Document Review Simulation This simulation, also available online, presents the Keystone Computers & Networks, Inc. (Keystone) Cash Work Memo for the general account and petty cash. Background financial and other information on Keystone is included in Appendix 6C of Chapter 6. The controller of Keystone Computers & Networks, Inc. (Keystone), a nonissuer, pre- pared six exhibits relating to Keystone's General Account cash position at year 5 year- end. A new audit assistant with your CPA firm has begun the audit of cash but has a number of questions and comments based on a quick examination of the exhibits, now included in the working papers, and a discussion of some matters with the controller of Keystone. Your job as senior on the engagement is to review the various points made by the assistant, including consideration of the exhibits. If one of you sees redundancies like this (mentioned in first para., make sure you bring them to our attention as we may miss them. DOCUMENT To: Audit Senior From: Audit Assistant Re Keystone Computers & Networks, Inc. General Account Cash Work Date: January 11, year 6 I have a number of points related to the auditing procedures I applied to Keystone's cash accounts as follow 1. Cash Lead Schedule (Exhibit 1): The company's petty cash (account 101) is stated at $50. But the petty cash custodian acknowledges that there was only $41 in the account as of year-end because a $9.00 expenditure for supplies had been made. This overstates cash by $9.00, although pass adjustment due to immateriality. (Callout 1 2. Bank Reconciliation (Exhibit 2): The account receivable collected by the bank was paid by a client directly to the bank on December 29, year 5. Keystone recorded the entry for the proper amount on January 2, year 6. No adjusting entry is needed as of 12/31/year 5. (Callout #2) 3. Standard Bank Confirmation (Exhibit 3): The bank representative added a comment to the confirma- tion. The comment is a "boilerplate" disclaimer of liability that definitely does not affect the reliability of the information we obtained. (Callout #3) 4. Deposit in Transit (Exhibit 4): The deposit in transit seems properly handled on the bank reconciliation (Exhibit 2) with a debit to cash. (Callout 24) 5. Outstanding Checks (Exhibit 5) and Bank Transfer Schedule (Exhibit 6). Check 2034 from the bank transfer schedule was omitted from the list of outstanding checks. This is because it was not written until 1/1/year 6. (Callout #5) 6. Outstanding Checks (Exhibit 5): The long-outstanding check for $200 will probably never be cashed as the company has attempted to communicate with the payee and failed. Because the state does not require submission of such funds, we should suggest to the client that the $200 check be deleted from the outstanding check list; no adjusting journal entry seems necessary. (Callout #6) 7. Outstanding Checks (Exhibit 5): Keystone's first bank statement in year 6 Included check 2027 dated on 12/30 for $1,500 to Jenco Corp. I found the check to be properly recorded in the cash disburse- ments journal as of 12/30/year 5. No further audit response is necessary related to check 2027 (Callout #7 8. Bank Transfer Schedule (Exhibit 6): Check 2032 appears to result in the cash being recorded in both accounts per books as of year-end and thus overstates total cash by $1,500 at year-end. (Callout 8) CALLOUT LIST #1 Choose an option below: a. [Original text), although pass adjustment due to immateriality. b. as, whenever petty cash is spent, a related journal entry debiting the expense and crediting petty cash should be recorded when an imprest account is used; accordingly, we should propose an adjusting entry. c. and indicates we need to perform additional procedures as this imprest account is not being properly used d. and indicates likely fraudulent financial reporting, e. and indicates likely misappropriation of assets. CALLOUT LIST #2 Choose an option below: a. [Original text] No adjusting entry is needed as of 12/31/year 5. b. [Delete entire point 2] c. We should propose an adjusting entry as of 12/31/year 5 debiting cash and crediting accounts receivable for $6,000. d. We should propose an adjusting entry as of 12/31/year 5 debiting cash and crediting mis- cellaneous revenues as net income is understated as of 12/31/year 5. e. We should increase our assessed level of fraud risk due to this situation and propose no adjusting entry as of 12/31/year 5. Cash and Financial Investments 449 CALLOUT LIST #3 Choose an option below: a. [Original text) The comment is a "boilerplate" disclaimer of liability that definitely does not affect the reliability of the information we obtained. b. (Delete entire point 31 c. Because the bank representative added a disclaimer to the confirmation, we must discard this confirmation and use other auditing procedures to establish the balances. d. Because the bank representative added a disclaimer to the confirmation, we are required by the professional standards to consider this a fraud risk factor and to consider the need for additional fraud-related procedures. Therefore, we are required to reconfirm the account electronically in this circumstance. f. This comment (disclaimer) on the confirmation may cast doubt about the completeness and accuracy of the information contained in the response and, accordingly, we should obtain further audit evidence e CALLOUT LIST #4 Choose an option below: a. [Original text) The deposit in transit seems properly handled on the bank reconciliation (Exhibit 2) with a debit to cash. b. [Delete entire point 4] c. The deposit in transit is likely to be an interbank transfer between the general account and the special account. d. The deposit in transit should be included on the bank transfer schedule. e. The deposit in transit seems to have taken too long to reach the bank; we should investi- gate this further CALLOUT LIST #5 Choose an option below: a. [Original text) This is because it was not written until 1/1/year 6. b. [Delete entire point 5) c. This is because it was written in year 4. d. But since the bank transfer schedule shows that it was received on 12/31/year 5 in the special account, we should investigate this transaction further. e. This represents a proper deposit in transit for the special account as of 12/31/year 5. CALLOUT LIST #6 Choose an option below: a. [Original text] be deleted from the outstanding check list; no adjusting journal entry seems necessary b. [Delete entire point 6] c. be deleted from the check list, with a possible adjusting journal entry proposed debiting cash and crediting a miscellaneous revenue type account. d. be deleted from the check list, with a debit to bad debt expense and a credit to cash. e. remain on the list of outstanding checks until cashed to keep the account in balance. f. is required to be reissued to a satisfactory charity for disbursement. CALLOUT LIST #7 Choose an option below: a. [Original text] No further audit response is necessary related to check 2027. b. [Delete entire point 7] c. We should perform further procedures to determine why the account reconciliation excludes this item, which should be listed as a deposit in transit as of year-end. apter Ten d. We should perform further procedures to determine why the account reconciliation excludes this item, which should be listed as an outstanding check as of year-end. e. We should propose an adjusting entry recording the disbursement in December h CALLOUT LIST #8 Choose an option below: a. [Original text] Check 2032 appears to result in the cash being recorded in both accounts per books as of year-end and thus overstates total cash by $1.500 at year-end. Delete entire point 81 c. The transaction related to Check 2032 is either a deposit or a withdrawal; it can't be both d. Check 2032 appears to result in the cash being recorded in both accounts per books as of year-end and thus overstates total cash by $3,000 at year-end. e. Check 2032 is recorded in the general account per bank in year 6; thus it understates total cash by $1,500 at year-end. EXHIBITS 1. Cash Lead Schedule 2. Bank Reconciliation General Account 3. Standard Bank Confirmation 4. Deposit in Transit 5. Outstanding Checks General Account 6. Bank Transfer Schedule-General Account EXHIBIT 1 A/C Keystone Computers & Networks, Inc. Cash Lead Schedule 12/31/year 5 Unadj. Description Prior Year 12/31/year 5 Dr. Genl. Acct. $42.754.00 $66.034.15 Special Acct. $ 9.960.00 $10.150.00 Cash in Register $ 1,200.00 $ 1.200.00 Petty Cash $ 50.00 $ 50.00 TOTAL $53,964.00 $77.434.15 Cr. 1000.10 1000.20 1000.30 1000.40 Adj. 12/31/ year 5 $66,034.15 $10.150.00 $ 1.200.00 $ 50.00 $77,434.15 *At year-end, 841 of cash and a receipt for $9.00 for postage Staff Associate EXHIBIT 2 Keystone Computers & Networks, Inc. Bank Reconciliation-General Account 12/31/year 5 Balance per bank @ 12/31/year 5 $ 74,636.73 Deposit in transit 15,2 10.50 Outstanding checks (17,822.08) Account Receivable proceeds collected by bank on 12/29 (6,000.00) Bank service charge 9.00 Balance per books @ 12/31/year 5 $ 66,034.15 Examined bank statement and identified receivable proceeds deposited in account by bank on 12/29; traced entry to entry in cash receipts journal on 1/2 year 6 when Keystone found out about the deposit made by the bank (Keystone entry: debit Cash, credit Accounts Receivable). Staff Associate EXHIBIT 3 Keystone Computers & Networks, Inc. Standard Bank Confirmation 12/31/year 5 STANDARD FORM TO CONFIRM ACCOUNT BALANCE INFORMATION WITH FINANCIAL INSTITUTION ORIGINAL To be mailed to accountant Financial Institution's Name and Address Keystone Computers & Networks, Inc. CUSTOMER NAME We have provided to our accountants the following information as of the close of business on 12/31/ years, regarding our deposit and loan balances. Please confirm the accuracy of the information, noting any exceptions to the information provided If the balances have been lett blank, please complete this form by furnishing the balance in the appropriate space below. Although we do not request nor expect you to conduct a comprehensive, detailed Search of your records, if during the process of completing this confirmation additional information about other deposit and loan accounts we may have with you comes to your attention, please include such information below. Please use the enclosed envelope to return the form directly to our accountants. First National Bank 1601 E. Broadway Tempe, AZ 85282 1. At the close of business on the date listed above, our records indicated the following deposit balances BALANCE ACCOUNT NAME ACCOUNT NO INTEREST RATE -O- $74,636.73 GENERAL 4344-7834 2. We were directly liable to the financial institution for loans at the close of business on the date listed above as follows: DATE THROUGH WHICH INTEREST IS PAID DESCRIPTION OF COLLATERAL ACCOUNT NOJ DESCRIPTION INTEREST RATE DATE DUE BALANCE Judith Hamilton 12/29/year Customer's Authorized Signature (Date) The information presented above by the customer is in agreement with our records. Although we have not conducted a comprehensive, detailed search of our records, no other deposit or loan accounts have come to our attention except as noted below Will Jones 01/05/year6 Financial Institution Authorized Signature) (Date Assistant Controller (Title) EXCEPTIONS AND/OR COMMENTS Information is not guaranteed to be accurate nor current and may be a matter of opinion, WJ Please return this form directly to our accountants Gill & Co, CPA's 2552 E. Camelback Road Phoenix, AZ 85002 Ordinarily balances are intentionally left blank if they are not available at the time the form is prepared L Keystone Computers & Networks, Inc. Deposit in Transit 12/31/year 5 Copy of Deposit Slip for Deposit in Transit DEPOSIT SLIP Keystone Computers & Networks, Inc. PO Box 2833353 Tempe, AZ 85282 7510.00 500.50 Currency Coin Checks Jones 146750 Adams 9022 4,000.00 3,200.00 Date: 12/31, year 5 Total From Other Side DEPOSITS MAY NOT BE AVAILABLE FOR IMMEDIATE WITHDRAWAL TOTAL DEPOSIT TICKET USE OTHER SIDE FOR ADDITIONAL LISTINGS Less Cash TOTAL ITEMS NET DEPOSIT 15,210.50 Exhibit 2 BE SURE EACH ITEM IS PROPERLY ENDORSED First National Bank 1601 E. Broadway Tempe, AZ 85282 31133544 954..54323533 Deposit received by bank on 1/10/year 6. Amount and details consistent Staff Associate EXHIBIT 5 Check # 1237 2028 2029 2030 2031 2032 2033 2035 Keystone Computers & Networks, Inc. Outstanding Checks-General Account 12/31/year 5 Date 1/6/year 5 12/15/year 5 12/15/year 5 12/22/year 5 12/29/year 5 12/31/year 5 12/30/year 5 12/31/year 5 Amount $ 200.00 2.50 1,000.00 14.757.36 40.00 1.500.00 22.22 300.00 $17.822.08 Note: Check No. 2034 not listed because it was issued on 1/1/year 6. Staff prepared the following schedule of transfers from the General Account to the Special Account EXHIBIT 6 Keystone Computers & Networks, Inc. Bank Transfer Schedule-General Account 12/31/year 5 Disbursing Bank Receiving Bank (General Account) (Special Account) Amount Books Bank Books Bank $1.500 12/31/year 5 1/1/year 6 12/31/year 5 12/31/year 5 $1,650 1/1/year 6 1/1/year 6 1/1/year 5 12/31/year 5 $1,200 1/3/year 6 1/3/year 6 1/3/year 6 1/3/year 6 Check No. 2032 2034 2041 Cash and Financial Investments 453 Procedures followed: 1. Agreed all disbursements to cash disbursements journal and bank statement (date, check no., amount, payee). No exceptions noted. 2. Agreed all cash receipts to cash receipts journal and bank statement (date, check no. amount, payee). No exceptions noted. Staff Assistant 1/21/year 6 10-46. Following are typical questions that might appear on an internal control questionnaire for investments in marketable securities, 1. Is custody of investment securities maintained by an employee who does not maintain the 0-6 10-45. Document Review Simulation This simulation, also available online, presents the Keystone Computers & Networks, Inc. (Keystone) Cash Work Memo for the general account and petty cash. Background financial and other information on Keystone is included in Appendix 6C of Chapter 6. The controller of Keystone Computers & Networks, Inc. (Keystone), a nonissuer, pre- pared six exhibits relating to Keystone's General Account cash position at year 5 year- end. A new audit assistant with your CPA firm has begun the audit of cash but has a number of questions and comments based on a quick examination of the exhibits, now included in the working papers, and a discussion of some matters with the controller of Keystone. Your job as senior on the engagement is to review the various points made by the assistant, including consideration of the exhibits. If one of you sees redundancies like this (mentioned in first para., make sure you bring them to our attention as we may miss them. DOCUMENT To: Audit Senior From: Audit Assistant Re Keystone Computers & Networks, Inc. General Account Cash Work Date: January 11, year 6 I have a number of points related to the auditing procedures I applied to Keystone's cash accounts as follow 1. Cash Lead Schedule (Exhibit 1): The company's petty cash (account 101) is stated at $50. But the petty cash custodian acknowledges that there was only $41 in the account as of year-end because a $9.00 expenditure for supplies had been made. This overstates cash by $9.00, although pass adjustment due to immateriality. (Callout 1 2. Bank Reconciliation (Exhibit 2): The account receivable collected by the bank was paid by a client directly to the bank on December 29, year 5. Keystone recorded the entry for the proper amount on January 2, year 6. No adjusting entry is needed as of 12/31/year 5. (Callout #2) 3. Standard Bank Confirmation (Exhibit 3): The bank representative added a comment to the confirma- tion. The comment is a "boilerplate" disclaimer of liability that definitely does not affect the reliability of the information we obtained. (Callout #3) 4. Deposit in Transit (Exhibit 4): The deposit in transit seems properly handled on the bank reconciliation (Exhibit 2) with a debit to cash. (Callout 24) 5. Outstanding Checks (Exhibit 5) and Bank Transfer Schedule (Exhibit 6). Check 2034 from the bank transfer schedule was omitted from the list of outstanding checks. This is because it was not written until 1/1/year 6. (Callout #5) 6. Outstanding Checks (Exhibit 5): The long-outstanding check for $200 will probably never be cashed as the company has attempted to communicate with the payee and failed. Because the state does not require submission of such funds, we should suggest to the client that the $200 check be deleted from the outstanding check list; no adjusting journal entry seems necessary. (Callout #6) 7. Outstanding Checks (Exhibit 5): Keystone's first bank statement in year 6 Included check 2027 dated on 12/30 for $1,500 to Jenco Corp. I found the check to be properly recorded in the cash disburse- ments journal as of 12/30/year 5. No further audit response is necessary related to check 2027 (Callout #7 8. Bank Transfer Schedule (Exhibit 6): Check 2032 appears to result in the cash being recorded in both accounts per books as of year-end and thus overstates total cash by $1,500 at year-end. (Callout 8) CALLOUT LIST #1 Choose an option below: a. [Original text), although pass adjustment due to immateriality. b. as, whenever petty cash is spent, a related journal entry debiting the expense and crediting petty cash should be recorded when an imprest account is used; accordingly, we should propose an adjusting entry. c. and indicates we need to perform additional procedures as this imprest account is not being properly used d. and indicates likely fraudulent financial reporting, e. and indicates likely misappropriation of assets. CALLOUT LIST #2 Choose an option below: a. [Original text] No adjusting entry is needed as of 12/31/year 5. b. [Delete entire point 2] c. We should propose an adjusting entry as of 12/31/year 5 debiting cash and crediting accounts receivable for $6,000. d. We should propose an adjusting entry as of 12/31/year 5 debiting cash and crediting mis- cellaneous revenues as net income is understated as of 12/31/year 5. e. We should increase our assessed level of fraud risk due to this situation and propose no adjusting entry as of 12/31/year 5. Cash and Financial Investments 449 CALLOUT LIST #3 Choose an option below: a. [Original text) The comment is a "boilerplate" disclaimer of liability that definitely does not affect the reliability of the information we obtained. b. (Delete entire point 31 c. Because the bank representative added a disclaimer to the confirmation, we must discard this confirmation and use other auditing procedures to establish the balances. d. Because the bank representative added a disclaimer to the confirmation, we are required by the professional standards to consider this a fraud risk factor and to consider the need for additional fraud-related procedures. Therefore, we are required to reconfirm the account electronically in this circumstance. f. This comment (disclaimer) on the confirmation may cast doubt about the completeness and accuracy of the information contained in the response and, accordingly, we should obtain further audit evidence e CALLOUT LIST #4 Choose an option below: a. [Original text) The deposit in transit seems properly handled on the bank reconciliation (Exhibit 2) with a debit to cash. b. [Delete entire point 4] c. The deposit in transit is likely to be an interbank transfer between the general account and the special account. d. The deposit in transit should be included on the bank transfer schedule. e. The deposit in transit seems to have taken too long to reach the bank; we should investi- gate this further CALLOUT LIST #5 Choose an option below: a. [Original text) This is because it was not written until 1/1/year 6. b. [Delete entire point 5) c. This is because it was written in year 4. d. But since the bank transfer schedule shows that it was received on 12/31/year 5 in the special account, we should investigate this transaction further. e. This represents a proper deposit in transit for the special account as of 12/31/year 5. CALLOUT LIST #6 Choose an option below: a. [Original text] be deleted from the outstanding check list; no adjusting journal entry seems necessary b. [Delete entire point 6] c. be deleted from the check list, with a possible adjusting journal entry proposed debiting cash and crediting a miscellaneous revenue type account. d. be deleted from the check list, with a debit to bad debt expense and a credit to cash. e. remain on the list of outstanding checks until cashed to keep the account in balance. f. is required to be reissued to a satisfactory charity for disbursement. CALLOUT LIST #7 Choose an option below: a. [Original text] No further audit response is necessary related to check 2027. b. [Delete entire point 7] c. We should perform further procedures to determine why the account reconciliation excludes this item, which should be listed as a deposit in transit as of year-end. apter Ten d. We should perform further procedures to determine why the account reconciliation excludes this item, which should be listed as an outstanding check as of year-end. e. We should propose an adjusting entry recording the disbursement in December h CALLOUT LIST #8 Choose an option below: a. [Original text] Check 2032 appears to result in the cash being recorded in both accounts per books as of year-end and thus overstates total cash by $1.500 at year-end. Delete entire point 81 c. The transaction related to Check 2032 is either a deposit or a withdrawal; it can't be both d. Check 2032 appears to result in the cash being recorded in both accounts per books as of year-end and thus overstates total cash by $3,000 at year-end. e. Check 2032 is recorded in the general account per bank in year 6; thus it understates total cash by $1,500 at year-end. EXHIBITS 1. Cash Lead Schedule 2. Bank Reconciliation General Account 3. Standard Bank Confirmation 4. Deposit in Transit 5. Outstanding Checks General Account 6. Bank Transfer Schedule-General Account EXHIBIT 1 A/C Keystone Computers & Networks, Inc. Cash Lead Schedule 12/31/year 5 Unadj. Description Prior Year 12/31/year 5 Dr. Genl. Acct. $42.754.00 $66.034.15 Special Acct. $ 9.960.00 $10.150.00 Cash in Register $ 1,200.00 $ 1.200.00 Petty Cash $ 50.00 $ 50.00 TOTAL $53,964.00 $77.434.15 Cr. 1000.10 1000.20 1000.30 1000.40 Adj. 12/31/ year 5 $66,034.15 $10.150.00 $ 1.200.00 $ 50.00 $77,434.15 *At year-end, 841 of cash and a receipt for $9.00 for postage Staff Associate EXHIBIT 2 Keystone Computers & Networks, Inc. Bank Reconciliation-General Account 12/31/year 5 Balance per bank @ 12/31/year 5 $ 74,636.73 Deposit in transit 15,2 10.50 Outstanding checks (17,822.08) Account Receivable proceeds collected by bank on 12/29 (6,000.00) Bank service charge 9.00 Balance per books @ 12/31/year 5 $ 66,034.15 Examined bank statement and identified receivable proceeds deposited in account by bank on 12/29; traced entry to entry in cash receipts journal on 1/2 year 6 when Keystone found out about the deposit made by the bank (Keystone entry: debit Cash, credit Accounts Receivable). Staff Associate EXHIBIT 3 Keystone Computers & Networks, Inc. Standard Bank Confirmation 12/31/year 5 STANDARD FORM TO CONFIRM ACCOUNT BALANCE INFORMATION WITH FINANCIAL INSTITUTION ORIGINAL To be mailed to accountant Financial Institution's Name and Address Keystone Computers & Networks, Inc. CUSTOMER NAME We have provided to our accountants the following information as of the close of business on 12/31/ years, regarding our deposit and loan balances. Please confirm the accuracy of the information, noting any exceptions to the information provided If the balances have been lett blank, please complete this form by furnishing the balance in the appropriate space below. Although we do not request nor expect you to conduct a comprehensive, detailed Search of your records, if during the process of completing this confirmation additional information about other deposit and loan accounts we may have with you comes to your attention, please include such information below. Please use the enclosed envelope to return the form directly to our accountants. First National Bank 1601 E. Broadway Tempe, AZ 85282 1. At the close of business on the date listed above, our records indicated the following deposit balances BALANCE ACCOUNT NAME ACCOUNT NO INTEREST RATE -O- $74,636.73 GENERAL 4344-7834 2. We were directly liable to the financial institution for loans at the close of business on the date listed above as follows: DATE THROUGH WHICH INTEREST IS PAID DESCRIPTION OF COLLATERAL ACCOUNT NOJ DESCRIPTION INTEREST RATE DATE DUE BALANCE Judith Hamilton 12/29/year Customer's Authorized Signature (Date) The information presented above by the customer is in agreement with our records. Although we have not conducted a comprehensive, detailed search of our records, no other deposit or loan accounts have come to our attention except as noted below Will Jones 01/05/year6 Financial Institution Authorized Signature) (Date Assistant Controller (Title) EXCEPTIONS AND/OR COMMENTS Information is not guaranteed to be accurate nor current and may be a matter of opinion, WJ Please return this form directly to our accountants Gill & Co, CPA's 2552 E. Camelback Road Phoenix, AZ 85002 Ordinarily balances are intentionally left blank if they are not available at the time the form is prepared L Keystone Computers & Networks, Inc. Deposit in Transit 12/31/year 5 Copy of Deposit Slip for Deposit in Transit DEPOSIT SLIP Keystone Computers & Networks, Inc. PO Box 2833353 Tempe, AZ 85282 7510.00 500.50 Currency Coin Checks Jones 146750 Adams 9022 4,000.00 3,200.00 Date: 12/31, year 5 Total From Other Side DEPOSITS MAY NOT BE AVAILABLE FOR IMMEDIATE WITHDRAWAL TOTAL DEPOSIT TICKET USE OTHER SIDE FOR ADDITIONAL LISTINGS Less Cash TOTAL ITEMS NET DEPOSIT 15,210.50 Exhibit 2 BE SURE EACH ITEM IS PROPERLY ENDORSED First National Bank 1601 E. Broadway Tempe, AZ 85282 31133544 954..54323533 Deposit received by bank on 1/10/year 6. Amount and details consistent Staff Associate EXHIBIT 5 Check # 1237 2028 2029 2030 2031 2032 2033 2035 Keystone Computers & Networks, Inc. Outstanding Checks-General Account 12/31/year 5 Date 1/6/year 5 12/15/year 5 12/15/year 5 12/22/year 5 12/29/year 5 12/31/year 5 12/30/year 5 12/31/year 5 Amount $ 200.00 2.50 1,000.00 14.757.36 40.00 1.500.00 22.22 300.00 $17.822.08 Note: Check No. 2034 not listed because it was issued on 1/1/year 6. Staff prepared the following schedule of transfers from the General Account to the Special Account EXHIBIT 6 Keystone Computers & Networks, Inc. Bank Transfer Schedule-General Account 12/31/year 5 Disbursing Bank Receiving Bank (General Account) (Special Account) Amount Books Bank Books Bank $1.500 12/31/year 5 1/1/year 6 12/31/year 5 12/31/year 5 $1,650 1/1/year 6 1/1/year 6 1/1/year 5 12/31/year 5 $1,200 1/3/year 6 1/3/year 6 1/3/year 6 1/3/year 6 Check No. 2032 2034 2041 Cash and Financial Investments 453 Procedures followed: 1. Agreed all disbursements to cash disbursements journal and bank statement (date, check no., amount, payee). No exceptions noted. 2. Agreed all cash receipts to cash receipts journal and bank statement (date, check no. amount, payee). No exceptions noted. Staff Assistant 1/21/year 6 10-46. Following are typical questions that might appear on an internal control questionnaire for investments in marketable securities, 1. Is custody of investment securities maintained by an employee who does not maintain the