ACCT 555 Week 6 HW KB Essay

Some data entry steps may occur at any time during the accounting cycle, other transactions occur only during financial statement production. Each step consists of set of rules used to ensure the accuracy and conformity of financial statements to avoid illegal actions using inaccurate figures. Each type of report has a level of significance and use as each document provides differing information involving things such revenues, cash flows, and other transactions made within an

The accounting department supervisor compares and reconciles a copy of the daily sales invoice batch report to the daily accounts posting report indicating the individual accounts. The daily account posting report is prepared and sent by the accounts receivable department. Discrepancies are investigated and resolved to help assure that the customer subsidiary accounts are posted for the same total amount posted to the control account. Cash Disbursements

Throughout the investigation it is evident that the business has adequate documentation of tax invoices which is the main document that certifies that a credit sale has taken place. These documents are important to ensure that the right amount of money is coming in through to the business so

-Conduct a validity check comparing the customer’s account number in transaction data with similar data in the master file to verify that the account exists. The error should be caught this way.

The Consultation General Ledger Analysis Reports prepared and sent to the Senior Manager – Finance and Comptroller as needed.

It runs on the main compliments such as accounts owing, expenditure, employee debt and account receivable.

Transactions include Existence or Occurrence, Valuation and Allocation and Presentation and Disclosure. For this purpose, Arthur Young should have inspected the records and documents, inquired, recalculated, reperformed and used analytical procedures. The types of evidence that should have been collected includes Client’s shipping documents, client prepared accounts receivable aging schedule, vendor invoices, comparisons of current year amounts with those from the prior year and management prepared financial statements and

There is a system of checks and balances in the respect that the sales order is verified upon receipt in the shipping department against the input information in the ERP system. If no match is found for the sales order, it is sent back to the Sales Department for correction. If the match is found, it is then verified for consistency of input into the system against the paper copy. If inconsistencies are present, the Sales Department is called. If the problem cannot be resolved, it is sent back to the Sales Department for correction. The matching restraints help to determine the validity and accuracy of the sales orders. The confirming of the sales order numbers for validity and contents for consistency and accuracy are strong prevention measures. A combination of individual department checks compiled with an ERP, which links all computers to the same reporting system, can show anomalies that may be indications of a problem (Duff, n.d.). By

Next, we can compare current trends of forex transactions with those of the previous years to determine their reasonableness. Our team can sample a few significant accounts with a higher risk of misstatement such as revenue, expenses or accounts receivable from the foreign subsidiary and check for the mathematical accuracy of documents and records. It can be also be used to verify the accuracy of the recording of transactions or of the application of accounting policies, for example by recalculating depreciation and accumulated depreciation of tangible assets.

7) Observe accounts payable clerk when information is keyed into computer. Use test transactions to ensure accuracy.

Compare all or a selected sample of account balances with the account balances in the accounts receivable subsidiary ledger.

investigate items such as, long outstanding items, dishonored checks and significant adjustments in the subsequent month, and record adjustments as necessary (accuracy and existence/occurrence).

It would be better if it is not the Accounts Payable who forwards the Receiving Report but the Inventory Control Department so that the Cash Disbursement Manager/Clerk can reconcile it with the PO and Sales Invoice sent to him.

b) Give the journal entries to record the Purchases, the Cost Goods Sold and the

2.7 A sales invoice will be issued by the supplier as a written record of transaction.