Hello, I need help with the question # 2. This question was created from Stu Assignment 02https://www.coursehero.com/file/11713123/Stu-Assignment-02/?focusQaId=10387497

My Professor explained that I suppose to perform an audit of cash. Using workpapers A-1 and A-2 to determine if adjusting entries are necessary, and if so, make them on the working papers.

I still don't have any idea how to solve assignment. Please advise.

1. Prepare a substantive audit program to test cash balances. The construction of such a program should begin with the ve nancial statetn-t assertions: [1] existence or occurrence, [2] completeness, [3] rights and obligations, {ti} valuation or allocation, and [5} presentation and disclosure. 1'r'ou should derive your specic audit objectives for cash balances from these assertions. 1|four audit program should address the ve financial statetn-t assertions, as well as any internal control weaknesses you have uncovered. In this regard, keep in mind the six control procedure categories, as well as the other internal control elements. Thu may assume that you have satised yourself as to any assertions not specically I-tioned in the narrative. As you write your program, rem-her the generalized evidence-gathering procedures of [1] recalculation, [2} physical observadon, [3] conrmation, {4] verbal inquiry, [5] vouching of documents, [6] tracing. {T} scanning, and {E} analy1ical procedures. Use them to help you write the specific evidencegathering procedures in your program. 1It'lirite your program on form APl. Use the nancial statement assertions as the major headings, or captions, for your program. 2. Study the prior year's working papers, paying attention to the use of tick marks to indicate your audit procedures, and the system of cross referencing among working papers. Gather evidence as necessary from the exhibits, the direct bank mailings, the clientprepared schedules, and your own observations to perform your audit work in the cash area by completing working papers A1 and A-E. Important Note: Mr. Lancaster}. President of Peach Homom Cologne Company, has asked you to record every adjusting journal entry that you nd, regaress of materiality. You should add any such adjnsunents to the applicable working paper and also record them on working paper AJE {Schedule of Adjlsting Journal Entries] and the workitg trial balance {working paper TEES-THIS}. Recording these adjustments on working papers AJIE and 'I'BBSFTBIS as you nd th_ will reduce your workload at the end of the audit