Reference no: EM132651356
Question - Assume you are the senior accountant on an audit engagement of a fictitious business, Pine Street Company (PSC). Assume the instructor is the engagement partner. You are to prepare a audit program for PSC. The firm manufactures and sells bicycles. The audit program must be in one of the following areas of the business: accounts receivable and revenues; inventories and costs of goods sold; accounts payable; payroll; or property, plant and equipment.
Identify the components/sections of a cash audit program for PSC.
Date General Journal Debit Credit
Merchandise Inventory: $5,900
Account Payable Johns $5,900
Merchandise Inventory $330
Cash $330
Account Payable Johns $900
Merchandise Inventory $900
Account Payable Johns $5,000
Cash $4,900
Merchandise Inventory $100
Merchandise Inventory $ 12,250
Account Payable Johns $12,250
Account Payable Johns $3,250
Merchandise Inventory $3,250
Account Payable Johns $9,000
Cash $8,820
Merchandise Inventory $180