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Logan, CPA, is auditing the receivables function of Rachel Industries, and has sent positive confirmation requests to a sample of customers selected from Rachel's accounts
Logan, CPA, is auditing the receivables function of Rachel Industries, and has sent positive confirmation requests to a sample of customers selected from Rachel's accounts receivable schedule.
Here are the confirmations. You may have select "open in new tab" in order to see it
Here are the options for "audit work to be performed":
Verify the cash receipt and deposit | Send a second confirmation request |
Propose that Rachel Industries book and adjusting entry | Assess control risk at a high level and send confirmation requests to an additional selection of customers |
Examine initial sales order for indication of credit check |
For each confirmation found in the "information" tab, review the confirmation response and select the appropriate audit response by double-clicking in the shaded area and selecting from the list provided.
Confirmation Number | Name | Amount | Audit work to be performed |
1 | Adams | $15,000 | Verify the cash receipt and depsit |
2 | Cummings | $32,000 | |
3 | Brown | $25,000 | |
4 | Gates | $75,000 | |
5 | Dunn | $45,000 | Propose that Rachel Industries book and adjusting entry |
6 | Hines | $80,000 |
To Loga CPA The amouur above ai conecta of December 31, Year 1, except as follows ordered $15.000 od November. However, waaled check for this tuercladase S15.000 Decentaber 18. V January 22.Year 2 CL Adams ame: Position: Accounting Manage To Lopan CPA: The mannnt shown nbone is correct as of December 31. Year 1-except as follows: We received goods with a cost of S24,000 and lhe of $32.000 on consignment fees Rachel Indiastries ee December 10. Yerr 1.but they re noe sold January 19 Year 2 President Note to files: Reviewed terms of shipment and noted goods were sent on consignment To Lagua, CPA The a ouar shown above caenect as December 31, Yeni except a follows: is 5.000 of October 10, Year 1, but Racluel Industries out of stock until recently. They back-ordered the good and fiaally ed thera January Year 2. January 13, Year 2 Name: S. Brown AMP Supervisor Note to files: Goods were shipped January Year 2 FOB shipping point To Logan CPA The amouer shown above is correct ms of December 31, Year 1, exceve as follows: 0 ds show that a check for ST5.000 was mailed on December 31. Year 1. January 22. year 2 H Gates Controller To Laga CPA shown above 31, Year Nowayt Rachel ladukties promised these goods in 10 days on December 2. Year 1. When we them. canceled the order o December12. Year 1 1. General Wholesaling daipped us winailar good ovenaiglatt January Year 2 R. Dunn Position General Manager Note to files: Order concelled and goods returned. ToLogaa CPA The amouut shows above cocaect as ofDeceaubn 31. Year 1, except as fouloas Rachel Indus duplicate shipmeat otly ordered $40.000 ed good. Jonuary 18, Year 2 K. Hines Position Accountant Note to files: Verified o duplicate shipment occurred
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