solved I’m working on a accounting question and need a sample
I’m working on a accounting question and need a sample draft to help me understand better.
You are the in-charge auditor examining the financial statements of
the Gutzler Company for the year ended December 31. During late October, with
the help of Gutzler’s controller, you completed an internal control
questionnaire and prepared the appropriate memoranda describing Gutzler’s
accounting procedures. Your comments relative to cash receipts are as follows:
All cash receipts are sent directly to the accounts receivable clerk with no
processing by the mail department. The accounts receivable clerk keeps the cash
receipts journal, prepares the bank deposit slip in duplicate, posts from the
deposit slip to the subsidiary accounts receivable ledger, and mails the deposit
to the bank. The controller receives the validated deposit slips directly
(unopened) from the bank. She also receives the monthly bank statement directly
(unopened) from the bank and promptly reconciles it. At the end of each month,
the accounts receivable clerk notifies the general ledger clerk by journal
voucher of the monthly totals of the cash receipts journal for posting to the
general ledger. page 259 With regard to the general ledger cash account,
the general ledger clerk makes an entry each month to record the total debits
to cash from the cash receipts journal. In addition, the general ledger clerk,
on occasion, makes debit entries in the general ledger cash account from
sources other than the cash receipts journal, for example, funds borrowed from
the bank. In the audit of cash receipts, you have already performed certain
standard audit procedures: All columns in the cash receipts journal have been
totaled and cross-totaled. Postings from the cash receipts journal have been
traced to the general ledger. Remittance advices and related correspondence
have been traced to entries in the cash receipts journal. Required: Considering
Gutzler’s internal control over cash receipts and the standard audit procedures
already performed, list all other audit procedures that should be performed to
obtain sufficient appropriate audit evidence regarding controls over cash and
give the reasons for each procedure. Do not discuss the procedures for cash
disbursements and cash balances. Also, do not discuss the extent to which any
of the procedures are to be performed. Assume that adequate controls exist to
ensure that all sales transactions are recorded. Organize your answer sheet as
follows: (AICPA adapted) Other Audit Procedure   Reason for Other Audit
Procedures