Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You are working on the audit of Gold Box Roasters Ltd and have just completed an evaluation of the controls in the cash receipt area.

You are working on the audit of Gold Box Roasters Ltd and have just completed an evaluation of the controls in the cash receipt area. You note the following key controls as part of your evaluation:

All cash handling is independent of the accounting functions cash.

Cash receipts are matched to specific sales invoices before being posted to the accounts payable master file.

There is an independent check that cash receipts are recorded in the correct account.

There is a comparison of deposit slips, prelists and the posting to the cash receipt journal.

There is a policy of depositing cash receipts each day.

Required:

Provide an example of one procedure that could be used to test the control for each of the five key controls identified above (5 marks)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Wiley CIA Essentials Of Internal Auditing Exam Review 2022 Part 1

Authors: S. Rao Vallabhaneni

1st Edition

1119846285, 978-1119846284

More Books

Students also viewed these Accounting questions

Question

what is a peer Group? Importance?

Answered: 1 week ago