outweigh the benefits. She decides to ask the organization’s outside auditor to review the internal control procedures and to make suggestions for improvement. Assume that you are the outside auditor. Indicate weaknesses in the existing internal control system over cash admission fees and recommend one improvement for each of the weaknesses you identified. Organize your answers as follows: 9-15. Identify one or more control procedures (either general or application controls‚ or
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Risks • Cash transactions may not be recorded accurately • Cash may not exist Steps 1. Confirm selected bank accounts and special arrangements Select bank accounts for confirmation in order to obtain a moderate to low level of assurance that the aforementioned audit objectives are achieved. Bank confirmations should be sent to all banking relationships to identify accounts not included in the general ledger. Confirmation requests should be sent under our control and‚ second requests
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000 in New Inventory $5‚000‚000 – 2‚000‚000 = $3‚000‚000 The company will free up $3 million in free cash flow. 16-2 Receivables Investment Receivables = (DSO) * (Average Daily Sales) X = (17 days) ($3‚500) X = $59‚500 is the average accounts receivable 16-3 Cost of Trade Credit Nominal Cost of Trade Credit = (Discount %) / (100-Discount %) x (365) / (Days Credit is outstanding – Discount Period) X = 3 / (100 - 3) * 365 / (30-15) X = 3 / 97 * 365 / 15 X = .0309278350515464 *
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Copyright © 2011 John Wiley & Sons‚ Inc. Weygandt‚ Accounting Principles‚ 10/e‚ Solutions Manual (For Instructor Use Only) 1-33 PROBLEM 1-1B (a) VINCE’S TRAVEL AGENCY | | | | | | | | | | | | | Owner’s Equity | | | Cash | + | AccountsReceivable | + | Supplies | + | Equipment | = | AccountsPayable | + | Owner’sCapital | – | Owner’s Drawings | + | Revenues | – | Expenses | | | | | | | | | | | | | | | | | | | | 1.2.3.4.5.6.7.8.9.10. | | +$15
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1 Chapter 7: Audit Evidence I. Definition: Evidence – information used by the auditor to draw conclusions on the fair presentation of the financial statements. Audit objectives suggest the types of evidence to accumulate. II. Decisions on evidence accumulation A. Which audit procedures to use. General Objectives: Six TRAOs Eight BRAOs Four PDAOs Accounting Cycles: Five Management Assertions Specific Objectives: At least: Six TRAOs Eight BRAOs Four PDAOs Audit Procedures: At least one
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ledgers to record financial transactions. It is very time consuming to record each single transaction onto paper‚ being very cautious not to make an error. There are several ledgers for each part of the accounting system‚ such as accounts payable‚ accounts receivable‚ and revenue accounts. Combining these ledgers into one general ledger‚ provide the balance for each ledger. The general ledger assists in organizing income statements and balance sheets. On the other hand‚ there are computerized programs
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page of Finance and Accounting. Under the overview that is to the left of the web page discuss the systems that are currently functional. It includes general ledger‚ accounts payable‚ accounts receivable‚ order entry‚ procurement‚ sales/purchasing history‚ invoicing/shipping‚ payroll‚ financial reporting‚ EDI (San Jose only)‚ bar code reading (San Jose)‚ and EDSS (Executive Decision Support System (San Jose only). The background is under the overview informs the user of the Georgia and Michigan finance
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Receivable: o December’s Sales were $10‚000 o 80% of sales is collected in the quarter in which they were made o 20% of sales collected in the following quarter in which they were made o Bad Debts is negligible Accounts
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and the Cash Journal. The Sales Journal records all sales of merchandise on account‚ cash and credit sales not included. The advantage of the sales journal is that it is time saving and easy because not every transaction has to be singled out‚ total can be reported instead. From the Sales Journal the entries can easily be posted into the general ledger. The Cash Receipt Journal records all cash received in accounts receivables and sales. It is usually made out of numerous columns and very detailed
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Amazon’s Mission Statement Our vision is to be earth’s most customer centric company; to build a place where people can come to find and discover anything they might want to buy online. Amazon.com is one of the major leaders in online retailing. Amazon may have concerns in the near future about; the statement of cash flows‚ revenue‚ debt‚ and the company’s liabilities. Below is a summary with various ratios to determine the future of the Amazon. Ratio Analysis The savings ratio
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