Question
You are on the audit team of Apollo Shoes, Inc. for the year ending December 31, 2015 and your manager has asked you to complete
You are on the audit team of Apollo Shoes, Inc. for the year ending December 31, 2015 and
your manager has asked you to complete the audit of cash using the following items:
Audit Plan
Bank Reconciliation prepared by client
Outstanding check list prepared by client
Bank Confirmation received directly from the bank by your audit firm
Cutoff Statement for the period 1/1/2016 - 1/15/2016 - received directly
from the bank by your audit firm
Some other things to note:
The general ledger account balance at 12/31/2015 is $226,750.12
The last check written in 2015 was #3621
If you need to make any changes to the bank reconciliation either
update the client's prepared reconciliation, or prepare your own,
just document what you have done
Use the examples in the book and PowerPoint slides as your reference
when completing this assignment. You can use whatever
workpaper references and tickmarks you would like, just be
consistent.
If something doesnt agree to what it is supposed to agree to, continue
with the audit plan to determine what is wrong and how it can be
corrected
Instructions:
Print out this full package of information and complete the audit of cash.
Remember to document the procedures you have performed on both the
audit plan and workpapers, and make sure to include workpaper
indexes (references) and sign offs.
Apollo Shoes Inc December 21,2015 | Documentation Reference | Performed By | Comments |
1. Obtain confirmations from banks (standard bank confirmation) | |||
2. Obtain reconcilliations of all bank accounts. a. Trace the bank balancde on the reconcilliation to the bank confirmation b. Trace the reconciled book balance to the general ledger c. Recomoute the bank reconciliation for mathematical accuracy | |||
3. Examine the bank confirmation for evidence of loans and collateral | |||
4.Inquire of the client to request a cutoff bank statement for each account, to be mailed directly to the audit firm a.Vouch deposits in transit on the reconciliation to the bank cutoff statement b.Trace the outstanding checks that have cleared the cutoff statement back to the list of outstanding checks on the bank reconciliation | |||
5. Prepare a schedule of interbank transfers for a period of 10 business days before and after the year-end date. Document dates of book entry transfer and correspondence with bank entries and reconciliation items, if any. | N/A | N/A | N/A |
6. Count cash funds in the presence of a client representative | N/A | N/A | N/A |
7. Obtain management representations concerning compensating balance agreements | N/A | N/A | N/A |
Apollo Shoes, Inc.
Bank Reconciliation - General Account
December 31, 2015
Balance per Bank Statement
$
3,309,192.03
Add: Deposits in Transit
440,782.45
Deduct: Outstanding Checks
(3,192,848.56)
General Ledger Cash Balance
$
557,125.92
Apollo Shoes, Inc.
Outstanding Checks
December 31, 2015
Check # Check Date Amount
3583 12/31/2015 9,606.37
3584 12/31/2015 823.27
3585 12/31/2015 7,960.15
3586 12/31/2015 8,533.12
3587 12/31/2015 4,741.30
3588 12/31/2015 14,122.85
3589 12/31/2015 6,707.05
3590 12/31/2015 10,587.77
3591 12/31/2015 7,566.07
3592 12/31/2015 5,684.08
3593 12/31/2015 18,421.90
3594 12/31/2015 12,741.49
3595 12/31/2015 988.55
3596 12/31/2015 10,014.94
3597 12/31/2015 15,746.44
3598 12/31/2015 16,472.00
3599 12/31/2015 12,610.96
3600 12/31/2015 200,000.00
3601 12/31/2015 5,717.19
3602 12/31/2015 6,394.61
3603 12/31/2015 14,766.54
3604 12/31/2015 15,816.16
3605 12/31/2015 4,807.21
3606 12/31/2015 2,794.07
3607 12/31/2015 2,667,006.32
3608 12/31/2015 9,515.15
3609 12/31/2015 1,501.40
3610 12/31/2015 5,929.87
3611 12/31/2015 1,266.85
3612 12/31/2015 4,194.79
3613 12/31/2015 17,205.98
3614 12/31/2015 14,366.46
3615 12/31/2015 12,904.00
3616 12/31/2015 9,338.02
3617 12/31/2015 1,073.73
3618 12/31/2015 13,377.14
3619 12/31/2015 7,841.27
3620 12/31/2015 2,566.30
3621 12/31/2015 11,137.19
Total 3,192,848.56
Account
604-17-526-5
Page
1 of 2
Apollo Shoes
100 Shoe Plazw
Shoetown, ME 00001
***Your Checking Account
1/1/2016 thru 1/15/2016***
Your Previous Balance
3,309,192.03
Additions
3 Deposits
29,597,022.90
2 transfers from other accounts
11,500,000.00
Deductions
55 checks
12,031,004.11
3 transfers to other accounts
29,365,369.20
Your Current Balance
3,009,841.62
Deposits and Other Additions
Date Amount
Date Amount
1/5/2015 440,782.45
1/13/2015 23,146,954.54
1/5/2015 6,009,285.91
Checks and Other Withdrawals
Check
Date
Amount
Check
Date
Amount
3586 1/3/2016 8,533.12
3590 1/7/2016
10,587.77
3587 1/3/2016 4,741.30
3603 1/7/2016
14,766.54
3582 1/3/2016 330,375.80
3604 1/7/2016
15,816.16
3591 1/4/2016 7,566.07
3606 1/7/2016
2,794.07
3598 1/4/2016 16,472.00
3583 1/10/2016
9,606.37
3597 1/5/2016 15,746.44
3584 1/10/2016
823.27
3599 1/5/2016 12,610.96
3588 1/10/2016
14,122.85
3602 1/5/2016 6,394.61
3592 1/10/2016
5,684.08
3615 1/5/2016 12,904.00
3594 1/10/2016
12,741.49
3612 1/5/2016 4,194.79
3595 1/10/2016
988.55
3593 1/6/2016 18,421.90
3601 1/10/2016
5,717.19
3610 1/6/2016 5,929.87
3605 1/10/2016
4,807.21
3617 1/6/2016 1,073.73
3607 1/10/2016 2,667,006.32
3619 1/6/2016 7,841.27
3608 1/10/2016
9,515.15
3585 1/6/2016 7,960.15
3609 1/10/2016
1,501.40
3589 1/6/2016 6,707.05
3613 1/10/2016
17,205.98
Account
604-17-526-5
Page
2 of 2
Checks and Other Withdrawals
Check
Date
Amount
Check
Date
Amount
3621 1/10/2016 11,137.19
3627 1/13/2016
6,891.16
3596 1/12/2016 10,014.94
3628 1/13/2016
6,025.43
3600 1/12/2016 200,000.00
3629 1/13/2016
927.09
3611 1/12/2016 1,266.85
3633 1/13/2016
6,924.96
3616 1/12/2016 9,338.02
3635 1/13/2016
5,174.00
3614 1/12/2016 14,366.46
3636 1/13/2016
585.28
3618 1/12/2016 13,377.14
3624 1/14/2016
6,868.12
3620 1/12/2016 2,566.30
3630 1/14/2016
8,419.69
3622 1/13/2016 6,683.93
3631 1/14/2016 8,434,889.09
3623 1/13/2016 2,937.13
3632 1/14/2016
1,117.19
3625 1/13/2016 124.81
3634 1/14/2016
4,994.99
3626 1/13/2016 15,216.88
Transfers to Other Accounts
Date Amount Account
1/7/2016 6,300,000.00
604-03-739-8
1/13/2015 22,500,000.00
604-03-739-8
1/14/2015 565,369.20
604-29-016-3
Transfers from Other Accounts
Date Amount Account
1/10/2015 3,500,000.00
604-03-739-8
1/14/2015 8,000,000.00
604-03-739-8
FINANCIAL INSTITUTION'S NAME AND ADDRESS
1. At the close of business on the date listed above, our records indicated the following deposit balance(s):
ACCOUNT NAME
ACCOUNT NO. INTEREST RATE
General Cash Account
604-17-526-5
n/a
2. We were directly liable to the financial institution for loans at the close of business on the date listed above as follows:
ACCOUNT NO./
INTEREST
DESCRIPTION
RATE
1/9/2016
(Date)
1/13/2016
(Date)
Please return this form directly to our accountants:
* Ordinarily, balances are intentionally left blank if they are not available at the time this form is prepared.
3,309,192.03
I.M. Rich
(Financial Institution Authorized Signature)
E.P Unum
(Customer's Authorized Signature
Approved 1990 by American Bankers Association, American Institute of Certified Public Accounts, and Bank Administration Institute. Additional forms available from: AICPA - Order
Department, P.O. Box 1003 NY, NY 10108-1003
STANDARD FORM TO CONFIRM ACCOUNT
BALANCE INFORMATION WITH FINANCIAL INSTITUTIONS
Apollo Shoes, Inc
CUSTOMER NAME
We have provided to our accountants the following information as of the close of business on
12/31/2016
,
regarding our deposit and loan balances. Please confirm the accuracy of the
information, noting any exceptions to the information provided. If the balances have been left blank,
please complete this form by furnishing the balance in the appropriate space below.* Although we do
not request nor expect you to conduct a comprehensive, detailed search of your records, if during the
process of completing this confirmation additional information about other deposit and loan accounts
we may have with you comes to your attention, please include such information below. Please use the
enclosed envelope to return the form directly to our accountants.
BALANCE*
Twenty First National Bank Post Office Box 1
Shoetown, ME 00002
The information presented above by the customer is in agreement with our records. Although we have not conducted a comprehensive, detailed search of our records, no other deposit or
loan accounts have come to our attention except as noted below.
EXCEPTIONS AND OR COMMENTS
No exceptions noted.
Andersen, Olds, and Watershed, LLP 32nd
Financial Avenue Shoetown, ME
00002
DATE THROUGH
WHICH INTEREST
IS PAID
DESCRIPTION OF
COLLATERAL
Note#106316
12,000,000
1/1/2015
8.15%
11/30/2014 Inventory
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