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The following transactions and events relate to financing transactions at Weber Inc. a. Identify the substantive procedure that should verify each transaction or event. b.
The following transactions and events relate to financing transactions at Weber Inc. a. Identify the substantive procedure that should verify each transaction or event. b. For each test, indicate the financial statement assertion(s) to which it pertains. c. Indicate the source of evidence obtained from the substantive procedure (i.e., outside party, client-generated, auditor's personal knowledge or observation, documented, oral). (Use a tabular format for your answers, with one column for each part.) Substantive Test 1. Declare cash dividend on common stock. Inspect entries in the cash disbursements journal 2. Issue bonds. 3. Pay bond interest. 4. Purchase 500 shares of treasury stock. 5. Pay cash dividend declared in (1) above. 6. Issue additional common stock for cash. 7. Accrue bond interest payable at year-end. 8. Redeem outstanding bonds. 9. Establish appropriation for bond retirement. 10. Announce a two-for-one stock split. Inspect cash disbursements journal entry, supporting documentation and consider confirming with the bond trustee. Recalculate interest expense Vouch entries to retained earnings to the board of directors minutes Vouch long-term debt account entries to board of directors minutes Vouch to cash disbursements journal & recalculate bond interest Vouch entries to brokers advice Vouch to the board of directors authorization and consider confirming with the transfer agent. Vouch to the board of directors minutes Vouch to the board of directors minutes and review authorizations and terms of stock issues
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