Acquisition and Payment Cycle – Audit Program Design Part II Acquisitions General: 1.) Review purchase and expenditure procedures with accounts payable personnel‚ receiving personnel‚ cashier‚ and vice president of finance department. 2.) Examine general ledger for large and unusual disbursement amounts. 3.) Determine whether purchases greater than $5‚000 have additional approval. Audit Objective: Recorded acquisitions are for goods and services received. 1.) Examine documents in
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$6‚340 Accounts Receivable Prepaid Insurance 700 Equipment 8‚000 Accounts Payable Property Taxes Payable 750 Common Stock Retained Earnings Service Revenue 7‚690 Salaries Expense 4‚200 Advertising Expense Property Tax Expense 900 $28‚580 Credit $2‚750 4‚100 5‚700 6‚000 1‚100 $19‚650 Your review of the ledger reveals that each account has a normal balance. You also discover the following errors. 1. The totals of the debit sides of Prepaid Insurance‚ Accounts Payable
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2010 and 2012 are both over 2.0‚ which is larger than the miscellaneous manufacturing company (1.64). This means in liquidity Mattel did better than average of manufacturing industry. 2.2 Quick Ratio |Year |Cash+Marketable Securities+Accounts Receivalbe/ Current Liabilities | |2010 |($1‚281‚123+$1‚146‚106)/$1‚350‚282=1.79 | |2011 |($1‚369
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CHALLENGE: need for business process reengineering in Ford Motor Company Ford Motor Company is the world’s second largest manufacturer of cars and trucks with products sold in more than 200 markets. The company employs nearly 400‚000 people worldwide‚ and has grown to offer consumers eight of the world’s most recognizable automotive brands. CHALLENGE With inherent large-scale growth issues‚ more demanding customers‚ and mounting cost pressures‚ Ford needed to transform from a linear‚ top-down
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following items appeared in the accounting records of Triguero’s‚ a retail music store that also sponsors concerts. | Classify each of the items as an asset‚ liability; revenue; or expense from the company’s viewpoint. Also indicate the normal account balance of each item. | | | | | | Classification | Normal Balance | a. The albums‚ tapes‚ and CDs held for sale to customers. | A | Debit | b. A long-term loan owed to Citizens Bank. | | L | Credit | c. Promotional costs
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Course Project VI ∫ 1. Comparison of current listing of accounts payable with that of the previous audit date‚ noting significant changes in amounts and makeup. 2. Ratios: * Gross profit ratio * Overhead/material cost * Overhead/direct labor * Accounts payable/ purchases * Units purchased/units sold * Material/total production cost * Specific expense items/sales 3. Trends * Purchases by month * Gross profit by month * Other recurring expenses
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cash and $4‚000 on account. 3. The company purchased supplies for $750 cash. 4. The company receives $4‚100 in cash revenue and $5‚400 in accounts receivable. 5. The company paid $1‚500 cash for accounts payable. 6. The company paid a $2‚000 dividend. 7. The company paid $800 cash for rent. 8. The company received a payment for accounts receivable. 9. The company paid its employees’ salaries in the amount of $3‚000. 10. The company paid their utility expense on account. Determine how
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performed accurately and on-time and set a reminder schedule for regular transactions. Display and alerts user on the due date of the recurring transactions .Access past transactions and create new transactions from the Bank Register Reconcile bank accounts as of a past date. Undo previous month’s bank reconciliation when reconciled in error. Enter interest earned and service fees from the Bank Reconciliation screen. Drill down from Bank Reconcile screen to original transactions .Enter bank statement
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shareholdings. Share issues can be fully payable on application or in instalments. When a company issues a prospectus‚ there is no accounting treatment. Accounting treatment occurs when applications are received. When applications are received‚ two accounts are introduced. Cash Trust and Application. The cash trust account is where the application money goes into when applications are received. It is put in a cash trust account rather than a cash account because the company does not legally own
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| Account | Debit | Credit | Debit | Credit | Debit | Credit | Cash | 15200 | | | | 15200 | | Account Receivable | | | 650 | | 650 | | Advertising Supplies | 2500 | | | 400 | 2500 | 400 | Prepaid Insurance | 600 | | | 200 | 600 | 200 | Office Equipment | 5000 | | | | 5000 | 0 | Accumulated Depreciation | | | | 100 | | 100 | Notes Payable | | 5000 | | | | 5000 | Account Payable | | 2500 | | 120 | | 2620 | Salaries Payable |
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