User Account

All Pages

What tests should the auditor perform to test each control

Assignment Help Accounting Basics
Reference no: EM132778424

An auditor discovered the following errors and irregularities while performing test of controls:

  1. Goods received on June 3 were never placed in the storeroom but instead were taken to the receiving clerk's home.
  2. Raw materials issued on July 15 were never recorded as issued from the storeroom.
  3. Inventory damaged by a rain remains in inventory at full cost.
  4. While the storeroom personnel are at lunch, production employees come into the storeroom to get the materials they need. They always complete and sign the requisition forms.
  5. Sometimes the storeroom issues raw materials to production without obtaining a signature on a materials requisition.

REQUIRED:

Problem a. What control should have prevented or detected which of the errors or irregularities?

Problem b. What tests should the auditor perform to test each control?

Reference no: EM132778424

Questions Cloud

What ending work in process company cost of finished goods : Beginning work in process inventory was 100,000 euros and its ending work in process company's cost of finished goods manufactured for the year?
Define the public health perspective : 'Explain how focusing on behaviours rather than on safety incidents might be a better approach to improving occupational health & safety?'
How would you go about using a more collaborative approach : As an HR professional, how would you go about using a more collaborative approach in gathering information for creating a job ad?
What lessons have you learnt from the studies : Write a detail note on "Hawthorne Studies'. What lessons have you learnt from these studies? By keeping in view the lessons learnt from these studies.
What tests should the auditor perform to test each control : What tests should the auditor perform to test each control? What control should have prevented or detected which of the errors or irregularities?
Connection to your current work environment : Demonstrate a connection to your current work environment.
What major trends and developments are retailers facing : What major trends and developments are retailers facing? How do these developments impact their competitive strategies? What are some of the various marketing.
Which diagnosis would the nurse anticipate : A nurse is reviewing the arterial blood gas(ABG) result of ph 7.62, PCO@ 40meq/L and HCO3 36meq/L for a client. Which diagnosis would the nurse anticipate
What adjusted book balance on december would be : What adjusted book balance on December 31, 2019 would be? The cash account of Q8 First Security Inc. reported a balance of KD 2,800

Reviews

Write a Review

Accounting Basics Questions & Answers

  Capital expenditure of a foreign subsidiary

Discuss the circumstances under which the capital expenditure of a foreign subsidiary might have a positive NPV in local currency terms but be unprofitable from the parent firm's perspective.

  A statement of financial position.

1. FASB Statement No. 117 directs that revenues and expenses be reported in a statement of financial position.

  What is linda total penalty for failure to file

Linda filed her tax return 2 months late. The tax paid with the return amounts to $3,000. What is Linda's total penalty for failure to file

  Given the following information calculate the net income

given the following information calculate the net income for the year ended december 31 2006 selling expenses 78000

  What amounts will appear on the lessor income statement

What items and amounts will appear on the lessor's income statement for the year ending September 30, 2008

  Compute the total expected dollar sales for next period

Greenspan Company management predicts $500,000 of variable costs, $800,000 of fixed costs, and a pretax income of $100,000 in the next period.

  Calculate the cost of purchasing the equipment

Angie Corporation is evaluating whether to lease or purchase equipment. Calculate the cost of purchasing the equipment

  Identify three existing key customer constituents

Identify three existing key customer constituents of Springfield Springs bottled water and perform a profitability analysis on each.

  Discuss denver office of a national public accounting firm

Summarize the arguments for remaining silent and not offering any advice to SuperFund on this matter

  Determine the contribution margin ratio

Willie Company sells 29,000 units at $42 per unit. Determine (a) the contribution margin ratio, (b) the unit contribution margin, and (c) income from operations

  Determine number of units completed

Bethesda Company's April 1, 2019 beginning work in process was 800 units. Use this information to determine number of units completed

  Describe sample transactions from your own experiences to

as you have learned in this weeks readings the accounting equation is assets liabilities owners equity.is the

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd