Integrated Case

This control is directly related to the accuracy transaction-related audit objective for sales. The auditor might test the effectiveness of this control by examining a sample of duplicate sales invoices for the clerk’s initials indicating that the unit selling price was verified.

The entries used to record the disposition when the receivables are sold to a factor often detail the cash received plus the service charge. The company can then balance their receivables account. When a credit card company records a credit card

The next step is to look at all the canceled checks and see if anyone else is involved in the fraud. Also see if any checks were signed over to a different account.

The activity register contains a history of all supply and property transactions. These include open and closed transactions that are tracked by serial number. The function provides the capability to search, view and/or print a report of these transactions, to reverse receipt or asset adjustment transactions that were input erroneously, and to view input transactions.

* Photocopies of fronts of two checks payable to Lisa (for $61.00 and 478.29) but the canceled checks were not able to be located or find evidence that it cleared IBC’s bank account. (508)

The company accounts for these transactions as sales in accordance with Statement of Financial Accounting Standards No. 77, ‘’Reporting

b. Prepare a control risk matrix for acquisitions and a separate one for cash disbursements using Figure 10-5 on page 308 as a guide. A formatted control risk matrix is provided on the textbook Web site. The objectives should be specific transaction-related audit objectives for acquisitions for the first matrix and cash disbursements for the second matrix. See pages 608–612 in Chapter 18 for transaction-related audit objectives for acquisitions and cash disbursements. In doing Part III, the following steps are recommended:

Performed oversight assessment of Contractor's Purchase Card (P-Card) procedures reviewed for detection of fraud, waste, and abuse, resulting in tighter internal controls (less card holders) and updates in contractor’s policies and procedures; Recommendations were made regarding safety and morale functions and incentives, and policies have been amended to tighten internal controls and to conform to federal regulations; Details given to federal lead for advice on performance fees of cost plus type contracts; Provided guidance to program managers and accountants on changes in law, policies, and procedures.

Read each transaction and record the appropriate journal entry for Morrison Consultants, which has a June 30 year end. Explanations are NOT required. 1. On June 30 2011, Morrison prepares an aging schedule of accounts receivable that shows estimated uncollectible accounts of $5,200. Before journal entries, the Allowance for Doubtful accounts has a debit balance of $300 and Accounts Receivable has a balance of $85,000. 2. On July 5, Morrison was notified that Sperry Ltd has declared bankruptcy and Morrison writes off its A/R

FUTRONICS Inc. is a private company located in Lexington mainly categorized for modems, monitors, disk drives and terminals. It is moreover in to sales and services. This case is about the replacement of Futronics’s central office stores by an outside service provider. In this case supply management manager have an opportunity for investigating selected outsourcing in-house services.

Purchase/payables/payment system: Based on a sample of 75 cash disbursements we concluded that the controls were operating effectively. Cash disbursements were made for purchases of raw materials from suppliers in Taiwan, and traced back to be properly converted to U.S. dollars and classified to the appropriate accounts.

The process of recording and posting the effects of business transaction is done in a double entry t-form. The total dollar amount of debits must equal the total dollar amount of credits, with debits to the left and account credit to the right. Broken down, Assets = Liabilities + Stakeholder Equity. “Since debits increase assets, expense, and dividend accounts, they normally have debit balances. Conversely, because credits increase liability, capital stock, retained earnings, and revenue accounts, they normally have credit balances.”( Edwards, J. D., Hermanson, R.H., & Maher, M. W. (2011). p.84)

It is the difference between cash receipts and cash disbursements from providing goods and services.

I understand that the payment was paid to a certain person in order to secure the contract and maximize the wealth of our company. According to the relevant regulations and rules provided by both

Checking of payments petty cash, purchase journal, store issue, journal & Credit vouchers and sale invoices.