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AUDIT TASK Make sure that the cash balance per bank shown on the bank reconciliation is verified by the bank Analyze the gross profit percentage with respect to previous period(s) and industry data Verify that the client has deeds or other proof of ownership for land and other plant assets Compare checks written in the weeks following the end of the fiscal period to amounts in accounts payable at period-end Consider payroll cost and expenses (in total and as a percentage of sales) for this period compared to prior period(s) Test the sales journal to establish that sales transactions actually took place and are reported in the proper period Compare the number of days' sales in accounts receivable (average collection period) from this period to prior period(s) Obtain an aged schedule of accounts receivable from period-end and verify the aging of the balances RELEVANT ASSERTION(S) Existence / Occurrence Completeness Cutoff Valuation & Allocation Rights & Obligation AUDIT EVIDENCE Physical…

The are the auditor of CK Company for the year ended, Dec. 31, 2020. The finance  manager of the company presented the following information relating to cash balances:    Petty Cash (Imprest fund balance) - P20,000   Cash in Bank – LBP (checking account) - 526,000   Cash in Bank – BDO (savings account) - 700,000   Cash in Bank – Metrobank (peso savings acct) - 200,000   Cash in Bank – Metrobank (dollar savings acct) - $2,000   The following information was gathered during the conduct of your audit:   The total bills and coins as per cash count amounts to P3,000   A total of receipts amounting to P16,240 relating to travel expenses were  unreplenished from PCF as of Dec, 31, 2020   The LBP account has the following transactions and details:   Bank Statement Balance as of Dec. 31, 2020 – P700,000   A total of P50,000 Deposits in Transit   Outstanding Checks amounting to P300,000   Total deposits already included in the bank but not yet recorded in the book,  P70,000   A check that…

Accompanying a bank statement for Santee Company is a credit memo for $24,516 representing the principal ($22,700) and interest ($1,816) on a note that had been collected by the bank. The company had been notified by the bank at the time of the collection but had made no entries. Required:   On March 1, journalize the entry that should be made by the company to bring the accounting records up to date. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.