Following Are Situations That an Auditor Might Find by Means

question 66

Essay

Following are situations that an auditor might find by means of tests of controls or tests of details of cash balances for a company with a December year end.A)The accountant did not record or deposit a cash receipt for $50 000 that was received on December 28.Cash is prelisted by the receptionist.B)Cheques prepared up to January 6 were dated December 31 and recorded in the cash disbursements journal.C)A cheque was issued for office supplies that were never received by the client.
Required:
List a substantive audit procedure that could uncover each of the preceding situations.

Interpret the relationship between controllable margin, sales, and ROI.

Differentiate between various costs (fixed, variable, direct, and indirect) in the context of investment centers.

Understand the role and evaluation of investment centers in an organization.

Recognize the importance of budgeting in managing costs and evaluating performance.

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Definitions:

Primary Data

Facts and figures that are newly collected for the project.

Secondary Data

Facts and figures that have already been recorded prior to the project at hand.

Collect Relevant Information

The process of gathering data that is pertinent and applicable to a specific purpose or analysis.

Take Marketing Actions

Refers to implementing specific strategies and tactics aimed at promoting, selling, and distributing a product or service to target consumers.