Problem One A book-selling company has a head office and 25 shops, each of which holds cash (bank notes, coins, and credit card vouchers) at the statement of financial position date. There are no receivables. Accounting records are held at shops. Shops make returns to head office and head office holds its own accounting records. Your firm has been hired as a forensic auditor for the company and has offices near to the location of some but not all of the shops. List the audit objectives for the audit of cash and state how you would gain the audit evidence in relation to those objectives at year end. Problem Two Bardwell is a privately owned incorporated business that operates a garage which repairs and services motor vehicles. Most customers are required to pay cash or check on collecting their vehicle. Credit accounts are available to business customers. These customers sign the invoice on collection of the vehicle and their business is billed monthly. Separate series of pre-numbered invoices are drawn up by the foreman for cash sales and for credit sales. All customer accounts are maintained by the receptionist. His duties include the following: Cash Sales --Collect cash or checks from customers on collecting their vehicle --At the end of the day, check the numerical sequence of cash sale invoices, add the sales total and agree the total to the amount of cash and checks received --Record the total cash sales in the cash receipts book Credit Sales --Obtain the customer?s signature on the invoice copy of business account customers --Enter the invoices in numerical sequence in the sales journal and post the customer?s account in the A/R ledger --Send monthly statements to credit account customers and follow up overdue accounts --List the balances on the A/R ledger at the end of the month and reconcile the total with the control account in the G/L Cash Receipts --Open the mail, extract checks from credit account customers, record them in the case receipts book, and post the A/R ledger --Make up the day?s banking cash and checks from both cash and credit sales, prepare the deposit slip and bank the cash and checks All other accounting duties are the responsibility of two further accounts clerks and all are subject to supervision by the garage manager. Required: As a member of the audit staff of the company?s external auditors, you visit the garage and make a count of cash on hand. You subsequently compare details of unbanked cash receipts that you counted with the entry in the cash receipts book for that date. Although the total in the cash receipts book is the same, the amount of banknotes and coins is less and there is a check from a business customer that you did not record. 1 Explain the procedures to be followed in making a cash count for audit purposes. 2 Explain the irregularity that the discrepancy between cash count and cash receipts book might lead you to suspect, and describe how you would investigate the discrepancy.,"Dear Student, Please provide me the word limit and also increase the deadline by at least by 15 hours so that i can provide you with the solution.." My homework problems are essay questions. Minimum words for each question might be 150 to 200. However, I can expand the total number of words to a degree and refine the answer on my own after I receive your answers. I just need understandable solutions so I can grasp the concepts and have successful responses to the problems. Unfortunately, I can?t increase the deadline by that amount of time. I really need the answers by 4:00 P.M. today (Saturday, July 31, 2010) Eastern time. I see that you have accepted my assignment and started working on it (your second message). Please let me know as soon as possible if you are going to make the deadline. Thank you very much.
Paper#5052 | Written in 18-Jul-2015Price : $25