S4-7
Based on the homeless shelter’s closing adjusted book balance and the amended ending bank balance; it would appear that the bank balance is understated by $1000 ($3600 less $2600) since the adjusted book closing balance equals $3600 and the adjusted bank closing balance equals to $2600. Thus, it can be concluded that the employee stole from the homeless shelter. After all adjustments have been factored, such as - deposits in transit to the bank unpresented cheques, service charge, and so on; the bank balance should be equivalent to the book balance in the case of the homeless shelter’s accounts. Therefore, the true cash balance concerns the book side.
E4-15: a
Jerry Miller should not a master key to the cash box where commuters pay for parking as a provision exist for him or anyone else who holds that position to steal. Mr. Miller has the opportunity to use the master key to remove a portion of the funds received and to cover his tracks, he can simple exclude the …show more content…
These types of accountants usually inspects the customer’s financial statements and the underlying transactions with the aim of forming a professional opinion on the correctness and dependability of the company’s financial statements (p.181). Given the aforementioned explanation about an external auditor, it is apparent that Mattson Financial Services’ auditor did not properly cross checking the records to be in a position to form professional opinions. As the fact that no tests are executed, in place a few computations are done, then the external auditor offers a determination. The problem here is that the Mattson Financial Services may not know whether or not their accounting records are up to standard owing to the auditing style
Based on the homeless shelter’s closing adjusted book balance and the amended ending bank balance; it would appear that the bank balance is understated by $1000 ($3600 less $2600) since the adjusted book closing balance equals $3600 and the adjusted bank closing balance equals to $2600. Thus, it can be concluded that the employee stole from the homeless shelter. After all adjustments have been factored, such as - deposits in transit to the bank unpresented cheques, service charge, and so on; the bank balance should be equivalent to the book balance in the case of the homeless shelter’s accounts. Therefore, the true cash balance concerns the book side.
E4-15: a
Jerry Miller should not a master key to the cash box where commuters pay for parking as a provision exist for him or anyone else who holds that position to steal. Mr. Miller has the opportunity to use the master key to remove a portion of the funds received and to cover his tracks, he can simple exclude the …show more content…
These types of accountants usually inspects the customer’s financial statements and the underlying transactions with the aim of forming a professional opinion on the correctness and dependability of the company’s financial statements (p.181). Given the aforementioned explanation about an external auditor, it is apparent that Mattson Financial Services’ auditor did not properly cross checking the records to be in a position to form professional opinions. As the fact that no tests are executed, in place a few computations are done, then the external auditor offers a determination. The problem here is that the Mattson Financial Services may not know whether or not their accounting records are up to standard owing to the auditing style