Essay on Wally's Billboard and Sign Supply

934 Words Sep 29th, 2012 4 Pages
Wally’s Billboard & Sign Supply
Questions 4, 5, 6, 7, & 8

(4) 1. Obtain cutoff bank statements – Cutoff and Completeness (AU-C 315.A114 a ii & IV) 2. Obtain copies of client’s bank reconciliations.
a. Test the mathematical accuracy of every bank reconciliation – Accuracy (AU-C 315.A114 a-iii)
b. Trace the line item “Balance per Bank Statement” – Accuracy and Existence (AU-C 315.A114 a-iii, b-i)
c. Trace the check number and amount of outstanding items – Occurrence, Completeness, & Accuracy (AU-C 315.A114 a.i-iii)
d. Trace the date, check number, and amount of outstanding item – Occurrence & Completeness. (AU-C 315.A114 a.i-ii)
e. Trace the amount of any deposits in transit – Cutoff,
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This will help me determine if a fraud was taking place doing many transactions of small amounts of cash.

(8) The process for electronic bank confirmations works by having the auditors create an audit confirmation request, which is then sent to the client. The client fills out the necessary information for the accounts that need to be confirmed. Once the relevant information is completed by the client, the bank will be notified via email that the account is ready to be confirmed. The electronic confirmation is filled out by the bank, and the auditor receives a standard bank confirmation just like the old way. The auditor is able to maintain control of the environment every step of the process. The electronic bank confirmations process allows the auditor to save hours related to the audit confirmation process but still deliver the necessary audit documentation as with the paper-based process. Because of the benefits to using electronic bank confirmations companies have adopted this new technique rather quickly. It seems that in every new change in the accounting world there is a steep learning curve which leads to skepticism in the beginning and a couple years later acceptance. There seems to be no learning curve or trial time for electronic bank confirmations. The benefits speak for themselves and reflect well on costs. Electronic bank confirmations benefit an auditor because it increases turnaround on confirmation responses. There is

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