Essay on Lakeside 12e Case 6

895 Words Jan 2nd, 2014 4 Pages
Case 6 - Exercise 2
Lakeside Company
Inventory Purchases and Cash Disbursements Transactions
December 31, 2006
Audit document No. N-3
Prepared by: AM 5/23/05
Reviewed by:
Reviewed by:

Date

Vendor Purchase Requisition Number Receiving Report Number
Invoice Number
Check Number
Audit
Procedures
8/20/06 Cypress Products 6702 3918 711 3091        
8/21/06 Cypress Products 6703 3919 802 3121    F    
8/24/06 Cypress Products 6705 3920 991 3164    F    
8/27/06 Cypress Products 6704 3921 1261 3203   E    H L
8/28/06 Cypress Products 6706 3922 1313 3251   D     
9/2/06 Cypress Products 6707 3923 1406 3310      G  
9/3/06 Cypress Products 6708 3924 1510 3345    
…show more content…
Thomas’ and Rogers’ signatures or initials present in all cases except E.
 Examined vendor invoice for agreement with receiving report and purchase requisition as to quantity and description of goods received. All agreed except C.
 Examined vendor invoice for evidence that company employees verify prices, extensions, and footings. Markings or initials present in all cases except F.
 Compared invoice prices with Master Price list. All agree except H, I, and J.
 Traced invoice to canceled check and matched dollar amounts, recalculating any applicable discount. All agreed except J. See also comment K.

Comments:
A. Receiving reports have no place for Vendor name. Most merchandise is received from Cypress Products, but if office supplies or other necessary material is received at the receiving dock, the report should have a place to indicate an alternate vendor than Cypress Products.
B. Receiving report #3926 not on file. Used Purchase Requisition and Vendor Invoice to verify quantity and descriptions of items. Obtained copies of Receiving Report from Treasury Department and Controller’s Office. Agreed with other documents. No indication as to reason for missing document was noted.
C. Receiving Report #3927 does not match Purchase Requisition #6711. Verified that Vendor Invoice and Purchase Journal match Receiving Report for all but one line item. Inventory

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