Reference no: EM131785460

Assignment

1.One invoice was paid twice. The second payment was supported by a duplicate copy of the invoice. Both copies of the invoice were marked "paid."

2.Two items in the acquisitions journal were misclassified.

3.Three invoices were not initialed by the controller, but there were no dollar misstatements evident in the transactions.

4.Five receiving reports were recorded in the acquisitions journal at least 2 weeks later than their date on the receiving report.

5.Two receiving reports for vendors' invoices were missing from the transaction packets. One vendor's invoice had an extension error, and the invoice was initialed that the amount had been checked.

6.One check amount in the cash disbursements journal was for $100 less than the amount stated on the vendor's invoice.

7.One voided check was missing.

Required

a. Identify whether each of 1 through 7 is a control test deviation, a monetary misstatement, or both.

b. For each exception, identify which transaction-related audit objective was not met.

c. What is the audit importance of each of these exceptions?

d. What follow-up procedures would you use to determine more about the nature of each exception?

e. How would each of these exceptions affect rest of the your audit? Be specific.

f. Identify internal controls that should have prevented each misstatement.