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.

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Definitions:

Personal Interest

Refers to an individual's hobbies, preferences, or passions that drive their personal satisfaction and motivation.

Moral Leaders

Individuals who guide and influence others based on ethical principles and values.

Influential

Having the power to affect the actions, behavior, or opinions of others.

Sarbanes-Oxley Act

A U.S. federal law that set new or expanded requirements for all U.S. public company boards, management, and public accounting firms to increase transparency and protect investors from fraudulent financial reporting.