Solution audit case the valley publishing company

ASSIGNMENT #1 Cash in Banks and on Han Cash in Banks at Year End. Valley Publishing Company maintains two checking accounts. The a ccount in Central State 1Sank is the general account used for ordinary cash receipts and diaburse- ments. The account in Albany National Bank is to and from the eneral aeelunt. inactive, except tor oecasional teansfera Mra. Henry prepares bank account reconciliations each month. For this pu rpose, abe obtains bank statements and all related clearlags directly trom the banks These bank statements, related elearings, and reconeiliations are matntained in her files At your request, she has prepared for you eopies of the bank account reconeiliations as ot lDecember 31, 1981 These reconciliations are ited with the 1981 work paper materala as Schedales A:I ad Al3. Standard bank account confirma- tion forms were mailed by you to the banks on January 4, 1982. The returned ennariations are filed with the 1981 work paper materials as Schedules A/2 and A/4 On January 4, 1982. you also malled to the banks lettera signed by the cliem cut-or bank statements for the perlod tram January i to January t 2, iai 1982, be mailed directly to you. tatements have now been received lby you and are shown aa Exhibits 1 and 2 The client's caslbooka were made available for yosr esanination. The parts of these books necesaary for your examination are shown as Exhibits 3 and 4 REQUIRED OF STUDENT The objective of the year-end examination of each in banks ia that to the validity of the ending balances in the ease accounts with banks, To this end, attention is di- rected (1) to the existence of cash in banks and (2) to the proper cut-off of eash receipts and cash disburaements transactions. the auditor be astisfled as the speeitie data given cut-off bank siatement tor the erlo t dauary I lo January Ta, 102, be mailed directly to u The eut-otr bank statements have now been received by you and are shown as Exhibits 1 and 2. The client's cashbooks were made available for your exainination. The parts of these books necessary for your examination are shown as Exhibits 3 and 4. REQUIRED OF STUDENT The objeetive of the year-end examination of cash in banks is that the auditor be satistied as to the validity of the ending balances in the case accounta with banks. To this end, attention is di- rected (1) to the existence of eash in banks and (21 to the proper cut-off of cash receipta and cash disbursements transactions 1. Study Schedules A/t through A/5 in the prior year's work papers and the specifie data given 2. Review the cash section of the audit program in the permanent tile 3. above. Note particularly the handling of adjusting entries and the system of cross-indexing. Complete the required work on Schedules A/l through AlS tor the current year's work papers- Cash on Hand at Year End. The only cash on hand at December 31, 1081, is the petty cash fund in the custody of Mrs. Stiles. It was not convenient at the time of your inventory observation work to count the petty cash fund. lowever, you did count the fund when you returned to the engagement on January 18, 1982. Your count sheet is filed with the 1981 work paper materiala as Schedule A/6 You have determined that the petty cash fund was not reimbursed between December 31, 1981,and January 18, 1982. REQUIRED OF STUDENT The objective of the year-end examination of cash on hand is that the auditor be s e validi ity of the ending balance in the pelly eash account. To this end, atterstion is directed istence of eash on hand and (2) to the proper cutoff of petty cash transactions. 1. Study Schedule A/6 in the prior year's work papers and the specifie data give - indexing particularly the handling of adjusting entries and the system of cross Review the cash section of the audit program in the permanent file. above. Note particularly the handling of adjusting entries and the system of cross-indexing. Review the cash section of the audit program in the permanent file. 2. papers to count the petty c January 18, 1982. REQUIRED OF STUDENT of the of eash on hand is that the auditor be satisfied as to the existence of cash on hand and (2) to the of cross-indexing. t year'a work papers. Continue ing amang figures on the working work on Schedule Alt for the c book, check register, and general Ledger. Certain of General ledger account, Cash in Central State National llank showed 1. Study s for the Albany National Ilank showed REQUIRED OF STUDENT ) and (2) that the auditor teat the impact the cash seotion of the audit program 2. Prepare "proof of cash" scheule for s and found no e the detail of each deposit to such it slips and remittance (el E charges the "proof of cash" ASSIGNMENT #1 Cash in Banks and on Han Cash in Banks at Year End. Valley Publishing Company maintains two checking accounts. The a ccount in Central State 1Sank is the general account used for ordinary cash receipts and diaburse- ments. The account in Albany National Bank is to and from the eneral aeelunt. inactive, except tor oecasional teansfera Mra. Henry prepares bank account reconciliations each month. For this pu rpose, abe obtains bank statements and all related clearlags directly trom the banks These bank statements, related elearings, and reconeiliations are matntained in her files At your request, she has prepared for you eopies of the bank account reconeiliations as ot lDecember 31, 1981 These reconciliations are ited with the 1981 work paper materala as Schedales A:I ad Al3. Standard bank account confirma- tion forms were mailed by you to the banks on January 4, 1982. The returned ennariations are filed with the 1981 work paper materials as Schedules A/2 and A/4 On January 4, 1982. you also malled to the banks lettera signed by the cliem cut-or bank statements for the perlod tram January i to January t 2, iai 1982, be mailed directly to you. tatements have now been received lby you and are shown aa Exhibits 1 and 2 The client's caslbooka were made available for yosr esanination. The parts of these books necesaary for your examination are shown as Exhibits 3 and 4 REQUIRED OF STUDENT The objective of the year-end examination of each in banks ia that to the validity of the ending balances in the ease accounts with banks, To this end, attention is di- rected (1) to the existence of cash in banks and (2) to the proper cut-off of eash receipts and cash disburaements transactions. the auditor be astisfled as the speeitie data given cut-off bank siatement tor the erlo t dauary I lo January Ta, 102, be mailed directly to u The eut-otr bank statements have now been received by you and are shown as Exhibits 1 and 2. The client's cashbooks were made available for your exainination. The parts of these books necessary for your examination are shown as Exhibits 3 and 4. REQUIRED OF STUDENT The objeetive of the year-end examination of cash in banks is that the auditor be satistied as to the validity of the ending balances in the case accounta with banks. To this end, attention is di- rected (1) to the existence of eash in banks and (21 to the proper cut-off of cash receipta and cash disbursements transactions 1. Study Schedules A/t through A/5 in the prior year's work papers and the specifie data given 2. Review the cash section of the audit program in the permanent tile 3. above. Note particularly the handling of adjusting entries and the system of cross-indexing. Complete the required work on Schedules A/l through AlS tor the current year's work papers- Cash on Hand at Year End. The only cash on hand at December 31, 1081, is the petty cash fund in the custody of Mrs. Stiles. It was not convenient at the time of your inventory observation work to count the petty cash fund. lowever, you did count the fund when you returned to the engagement on January 18, 1982. Your count sheet is filed with the 1981 work paper materiala as Schedule A/6 You have determined that the petty cash fund was not reimbursed between December 31, 1981,and January 18, 1982. REQUIRED OF STUDENT The objective of the year-end examination of cash on hand is that the auditor be s e validi ity of the ending balance in the pelly eash account. To this end, atterstion is directed istence of eash on hand and (2) to the proper cutoff of petty cash transactions. 1. Study Schedule A/6 in the prior year's work papers and the specifie data give - indexing particularly the handling of adjusting entries and the system of cross Review the cash section of the audit program in the permanent file. above. Note particularly the handling of adjusting entries and the system of cross-indexing. Review the cash section of the audit program in the permanent file. 2. papers to count the petty c January 18, 1982. REQUIRED OF STUDENT of the of eash on hand is that the auditor be satisfied as to the existence of cash on hand and (2) to the of cross-indexing. t year'a work papers. Continue ing amang figures on the working work on Schedule Alt for the c book, check register, and general Ledger. Certain of General ledger account, Cash in Central State National llank showed 1. Study s for the Albany National Ilank showed REQUIRED OF STUDENT ) and (2) that the auditor teat the impact the cash seotion of the audit program 2. Prepare "proof of cash" scheule for s and found no e the detail of each deposit to such it slips and remittance (el E charges the "proof of cash