Accounts payable

risky client will be assessed as a low acceptable audit risk.) I will identify the audit risk as high. c. Identify inherent risks for the audit of Pinnacle using the information from Parts I and II. For each inherent risk, identify the account or accounts that may be affected. (1)Related Parties – A reporting entity’s affiliates, principal owners, and management also, any members of their immediate families. Points of consideration is a Pinnacle VP owning Todd-Machinery, its repair men working

2011. BUG-OFF EXTERMINATORS December 31, 2011 Unadjusted Trial Balance Cash 17,000 Accounts receivable 4,000 Allowance for doubtful accounts 828 Merchandise inventory 11,700 Trucks 32,000 Accum. depreciation-Trucks - Equipment 45,000 Accum. depreciation-Equipment 12,200 Accounts payable 5,000 Estimated warranty liability 1,400 Unearned services revenue - Interest payable - Long-term notes payable 15,000 D. Buggs, Capital 59,700 D. Buggs, Withdrawals 10,000 Extermination services

Annual cost of goods sold = $360,000 Average accounts receivable = $160,000 Average accounts payable = $25,000 Cash Conversion Cycle: Inventory conversion period (ICP) = Average inventory / Cost of goods sold per day =

Verification a. Accounts Payable Department has the complete access to the PO, Receiving Report and Sales Invoice before forwarding it to the Cash Disbursement System. The department can alter these documents then send it to the Cash Disbursement. 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. The Accounts Payable Department

| | | c. Allowance for doubtful accounts. | | | d. The present value of accounts receivable. | | Correct Marks for this submission: 5/5. Question 3 Marks: 5 The practice of reporting the net realizable value of receivables in the financial statements is commonly called: Choose one answer.

Team C analyzed the accounts payable, accounts receivable, payroll, and inventory systems for Kudler Fine Foods. Kudler would now like to see a proposed audit schedule for these systems. The team will distinguish between the types of audits that may use for each process. The team will also recommend the most appropriate audit for each process and explain how to conduct the audits. Identifying events that may prevent reliance on auditing through the computer will also be presented to Kudler for

| Question : | Two accounts with subsidiary ledgers are | |   | Student Answer: | |  accounts receivable and cash receipts. (Accounts receivable has a subsidiary ledger, but cash receipts do not.) |   | | |  accounts payable and cash payments. (Accounts payable has a subsidiary ledger, but cash payments do not.) |   | | |  accounts receivable and accounts payable. (Correct! Accounts receivable and accounts payable both have subsidiary ledgers.) |   | | |

business operation. The system they practice has been working well for them for several years. In this report I will expand on each section according to the process method they use such as accounts receivable, accounts payable, credit card processes, board of directors, and annual audits. Accounts Receivable The company’s invoice is professionally printed and numbered. The three page duplicate invoices

functions include Purchase Orders, Receive Inventory and the subsequent Enter Bills Against Inventory (Intuit, 2014). In the end this function is associated with Accounts Payable (A/P) because it is money owed to an existing party and is counted as a liability on your balance sheet. After Vendors comes Customers; this is where Accounts Receivable works or better known as A/R. Most of the functions in Customers are quite useful. Under the Employees

Company during January, its first month of operations, are listed below. Assume that Franklin Company uses the following journals: Cash Receipts (CR), Cash Payments (CP), Revenue (R), Purchases (P), and General (G). Assume that it uses Accounts Receivable and Accounts Payable Subsidiary Ledgers as well as a General Ledger. Indicate by letters which journal would be used for each transaction. Also indicate if the entry requires a posting to a subsidiary ledger. The transactions completed by Franklin Company