Consider the following internal controls associated with an evaluated receipts process. For each control, identify the assertion for which the control is designed to prevent, or detect and correct misstatements. a. b. C. d. e. f. g. h. Software generates a daily report comparing the daily total in the cash disbursements journal with the total of payables submitted to the third-party payment processor for payment, and discrepancies are reported. Software generates a daily report of any discrepancies between the vendor accounting coding and general ledger accounts coding, which is compared with the purchase order and purchase requisition. Software generates a daily report of any discrepancies between the recorded payable and quantities on the receiving report. Once a receiving report is matched with a purchase, it cannot be matched with another purchase. Software generates a daily report of receiving reports that have not been matched one-for-one with the recording of a purchase and a liability. Software generates a daily report of any discrepancies between the recorded payable and quantities on the receiving report or prices on the purchase order, and other information such as freight and taxes on the advance shipping notice from the vendor. Software generates a daily report of any discrepancies between the accounting period on the receiving report and the accounting period on the recording of the purchase and liability. The purchasing entity performs an independent bank reconciliation. Software develops a daily report that compares the EFT information submitted to the third-party payment processor with the payable and invoice information and that identifies any discrepancies. Accuracy of cash disbursements. Accuracy of purchases. Classification of expenses and payables. Completeness of cash disbursements. Completeness of purchases. Occurrence of purchases. Purchases cutoff. Valuation of cash balances.
Consider the following internal controls associated with an evaluated receipts process. For each control, identify the assertion for which the control is designed to prevent, or detect and correct misstatements. a. b. C. d. e. f. g. h. Software generates a daily report comparing the daily total in the cash disbursements journal with the total of payables submitted to the third-party payment processor for payment, and discrepancies are reported. Software generates a daily report of any discrepancies between the vendor accounting coding and general ledger accounts coding, which is compared with the purchase order and purchase requisition. Software generates a daily report of any discrepancies between the recorded payable and quantities on the receiving report. Once a receiving report is matched with a purchase, it cannot be matched with another purchase. Software generates a daily report of receiving reports that have not been matched one-for-one with the recording of a purchase and a liability. Software generates a daily report of any discrepancies between the recorded payable and quantities on the receiving report or prices on the purchase order, and other information such as freight and taxes on the advance shipping notice from the vendor. Software generates a daily report of any discrepancies between the accounting period on the receiving report and the accounting period on the recording of the purchase and liability. The purchasing entity performs an independent bank reconciliation. Software develops a daily report that compares the EFT information submitted to the third-party payment processor with the payable and invoice information and that identifies any discrepancies. Accuracy of cash disbursements. Accuracy of purchases. Classification of expenses and payables. Completeness of cash disbursements. Completeness of purchases. Occurrence of purchases. Purchases cutoff. Valuation of cash balances.
Auditing: A Risk Based-Approach (MindTap Course List)
11th Edition
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter11: Auditing Inventory, Goods And Services, And Accounts Payable: The Acquisition And Payment Cycle
Section: Chapter Questions
Problem 35RQSC
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Transcribed Image Text:Consider the following internal controls associated with an evaluated receipts process.
For each control, identify the assertion for which the control is designed to prevent, or detect and correct misstatements.
a.
b.
C.
d.
e.
f.
g.
h.
Software generates a daily report comparing the daily total in the cash
disbursements journal with the total of payables submitted to the third-party
payment processor for payment, and discrepancies are reported.
Software generates a daily report of any discrepancies between the vendor
accounting coding and general ledger accounts coding, which is compared
with the purchase order and purchase requisition.
Software generates a daily report of any discrepancies between the recorded
payable and quantities on the receiving report. Once a receiving report is
matched with a purchase, it cannot be matched with another purchase.
Software generates a daily report of receiving reports that have not been
matched one-for-one with the recording of a purchase and a liability.
Software generates a daily report of any discrepancies between the recorded
payable and quantities on the receiving report or prices on the purchase order,
and other information such as freight and taxes on the advance shipping
notice from the vendor.
Software generates a daily report of any discrepancies between the
accounting period on the receiving report and the accounting period on the
recording of the purchase and liability.
The purchasing entity performs an independent bank reconciliation.
Software develops a daily report that compares the EFT information
submitted to the third-party payment processor with the payable and invoice
information and that identifies any discrepancies.
Accuracy of cash disbursements.
Accuracy of purchases.
Classification of expenses and payables.
Completeness of cash disbursements.
Completeness of purchases.
Occurrence of purchases.
Purchases cutoff.
Valuation of cash balances.
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