Course Project Part 7 16 35 Section B
Course Project Part 7
Problem 16-35 Section B
David S. Pesi
DeVry University
b.
1. Re-add or use the computer to total the accounts payable list and trace the total to the general ledger
Ending balance tests
2. Select a sample of 51 vendors and request that they send a copy of their year-end statement directly to you. Examine the vendors’ statements and reconcile these to the accounts payable list.
3. Trace from the accounts payable list vendors’ invoices and statements for any non-responses.
Cutoff tests
4. Obtain number of last receiving report issued as part of physical observation of inventory.
5. Examine subsequent cash disbursements greater than $50,000 and examine related documentation to determine if such disbursements were properly recorded as liabilities as of the balance sheet date.
6. Trace a sample of receiving reports issued just before and after year-end to the appropriate journal and vendor invoice.
7. Examine vendor invoices for merchandise received shortly after year-end to determine whether they were on an FOB origin basis.
Disclosure and classifications tests
8. Review the list and master file for related parties, notes or other interest-bearing liabilities, long-term payables, and debit balances.
9. Review financial statements to make sure that material related parties, long-term, and interest-bearing liabilities are segregated.
Problem 16-35 Section B
David S. Pesi
DeVry University
b.
1. Re-add or use the computer to total the accounts payable list and trace the total to the general ledger
Ending balance tests
2. Select a sample of 51 vendors and request that they send a copy of their year-end statement directly to you. Examine the vendors’ statements and reconcile these to the accounts payable list.
3. Trace from the accounts payable list vendors’ invoices and statements for any non-responses.
Cutoff tests
4. Obtain number of last receiving report issued as part of physical observation of inventory.
5. Examine subsequent cash disbursements greater than $50,000 and examine related documentation to determine if such disbursements were properly recorded as liabilities as of the balance sheet date.
6. Trace a sample of receiving reports issued just before and after year-end to the appropriate journal and vendor invoice.
7. Examine vendor invoices for merchandise received shortly after year-end to determine whether they were on an FOB origin basis.
Disclosure and classifications tests
8. Review the list and master file for related parties, notes or other interest-bearing liabilities, long-term payables, and debit balances.
9. Review financial statements to make sure that material related parties, long-term, and interest-bearing liabilities are segregated.