Items a through /represent possible errors and fraud that you suspect may be present at Rex Company. The accompanying List of Auditing Procedures represents procedures that the auditor would consider performing to gather evidence concerning possible errors and fraud. For each item, select one or two procedures, as indicated that the auditor most likely would perform to gatherlevidence in support of that item. The procedures on the list may be selected once, more than once, or not at all. List of Auditing Procedures A. Compare the details of the cash receipts journal L. Examine the entity's shipping documents to verify that entries with the details of the corresponding daily the merchandise that produced the receivable was deposit slips. actually sent to the customer. B. Scan the debits to the fixed asset accounts and vouch M. Inspect the entity's correspondence files for selected amounts to vendors invoices and management's indications of customer disputes for evidence that authorization. certain shipments were on consignment. c. Perform analytical procedures that compare documented N. Perform edit checks of data on the payroll transaction authorized pay rates to the entity's budget and tapes. forecast. D. Obtain the cutoff bank statement and compare the 0. Inspect payroll check endorsements for similar cleared checks to the year-end bank reconciliation. handwriting E. Prepare a bank transfer schedule. P. Observe payroll check distribution on a surprise basis. F. Inspect the entity's deeds to its real estate. Q. Vouch data in the payroll register to documented authorized pay rates in the human resources department's files. G. Make inquiries of the entity's attorney concerning the R. Reconcile the payroll checking account and determine if details of real estate transactions. there were unusual time lags between the issuance and payment of payroll checks. Items a through /represent possible errors and fraud that you suspect may be present at Rex Company. The accompanying List of Auditing Procedures represents procedures that the auditor would consider performing to gather evidence concerning possible errors and fraud. For each item, select one or two procedures, as indicated that the auditor most likely would perform to gatherlevidence in support of that item. The procedures on the list may be selected once, more than once, or not at all. List of Auditing Procedures A. Compare the details of the cash receipts journal L. Examine the entity's shipping documents to verify that entries with the details of the corresponding daily the merchandise that produced the receivable was deposit slips. actually sent to the customer. B. Scan the debits to the fixed asset accounts and vouch M. Inspect the entity's correspondence files for selected amounts to vendors invoices and management's indications of customer disputes for evidence that authorization. certain shipments were on consignment. c. Perform analytical procedures that compare documented N. Perform edit checks of data on the payroll transaction authorized pay rates to the entity's budget and tapes. forecast. D. Obtain the cutoff bank statement and compare the 0. Inspect payroll check endorsements for similar cleared checks to the year-end bank reconciliation. handwriting E. Prepare a bank transfer schedule. P. Observe payroll check distribution on a surprise basis. F. Inspect the entity's deeds to its real estate. Q. Vouch data in the payroll register to documented authorized pay rates in the human resources department's files. G. Make inquiries of the entity's attorney concerning the R. Reconcile the payroll checking account and determine if details of real estate transactions. there were unusual time lags between the issuance and payment of payroll checks.
