Loose Leaf for Financial Accounting: Information for Decisions
Loose Leaf for Financial Accounting: Information for Decisions
9th Edition
ISBN: 9781260158762
Author: John J Wild
Publisher: McGraw-Hill Education
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Chapter 6, Problem 4BTN
Summary Introduction

Introduction: For proper flow in a working organization internal control system must be set up. By which the company maintain its standards, policy and procedures continued to be implied on it employees and colleagues. Size, nature of business and activities of the company differ from company to company, where the process of procedures and policy come along.

To determine: The control which a team spoke person should identifies and must be different from other team’s spokes person.

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Identify which department has stewardship (having the job of supervising or taking care of) over the following journals, ledgers, and files. (Please be reminded of the Honor Pledge written in your answer sheet.) 1. Customer open order file   2. Sales journal  3. Journal voucher file   4. Cash receipts journal  5. Inventory subsidiary ledger  6. Accounts receivable subsidiary ledger  7. Sales history file  8. Shipping report file  9.  Credit memo file10. Sales order file11.  Closed sales order file       PreviousNext
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Performance Task #2. Case Study Instructions: Analyze the given situations and prepare what is asked for you to compute. Answers must be in a paragraph form. Place your output in your notebook. God bless! You are auditing the financial statements of Sakura Store, a retailer of sporting goods, appliances, and electronics. During the prior years' audits of Sakura Store, you noticed that management was less concerned about the timely recording of liabilities and expenses than assets and revenues. As a result, very little of Sakura Store's internal control resources were expended in assuring an accurate and timely recording of accounts payable. You also believed that Sakura Store's management may be motivated to delay recording its liabilities at year end, so you are currently approaching the search for unrecorded liabilities with caution. Questions: a. Wha are the substantive auditing procedures would you perform in searching for Sakura's unrecorded liabilities? 109 6. How would the…
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