Oceanview marine company exercise

Assignment Help Accounting Basics

Reference no: EM13691219

Oceanview Marine Company Exercise: Cash Audit Program
Please provide answers for the following questions related to your evaluation of the cash audit program for the 2007 audit of Oceanview Marine Company. You should type your responses to the questions posed below.

1. Based on the cash lead sheet (20-1), how many cash accounts does Oceanview have?

2. As an auditor, which account carries the greatest risk? What risk does this account pose?

3. Refer to the Audit Program for cash (20-2 to 20-3). Prepare a brief statement as to the purpose of each of the steps in the audit program (e.g., why is the auditor performing those steps? what is the risk if the step is not performed? What assertions are being tested? ) You can explain the purpose any way you choose. You only need to explain steps 2-16 in the cash program.

4. Refer to the bank reconciliation on page 20-5.

a. What is the difference between this reconciliation and the one on page 20-6?

5. Refer to the bank reconciliation on page 20-6.

a. Will the deposits in transit show up on the December 2007 bank statement? Why or why not?
b. What are some ways in which the auditor could substantiate the deposits in transit?

6. Refer to the confirmation on 20-7.
a. Why is it important for the auditor to confirm cash amounts? Why not just rely on the bank statement?
b. Why does the auditor ask about loans outstanding on the cash confirmation? Does this have anything to do with the purpose of the confirmation? Explain.

Reference no: EM13691219

Questions Cloud

Manufacturing overhead costs for year 2013 : Manufacturing overhead costs for year 2013.

What is the contribution margin ratio : What is the contribution margin ratio?

Prepare a sales budget : Prepare a sales budget.

The aicpa ethics are evidently not an entire set of ethics : The AICPA ethics are evidently not an entire set of ethics

Oceanview marine company exercise : Oceanview Marine Company Exercise: Cash Audit Program

Systolic blood pressure in different age groups : SYSTOLIC BLOOD PRESSURE IN DIFFERENT AGE GROUPS - Is there sufficient evidence to support the claim that women in the different age categories have different mean blood pressure levels

International accounting case : International Accounting Case, Yazd Corporation is a U.S.-Based company that prepares its consolidated financial statements in accordance with U.S. GAAP.

Idea of discontinuing the products with losses : What would you tell Roger about his idea of discontinuing the products with losses and what other factors besides losses should be considered before discontinuing a product

Illustrate the producers and the consumer-workers problems : Compute the unique Pareto-efficient allocation of the "Robinson Crusoe Economy" and illustrate the producer's and the consumer-worker's problems in one and the same diagram.

User Account

All Pages