Assertion and Related Control Activity - Cash Receipt Transactions Flashcards Preview

Auditing and Attestation > Assertion and Related Control Activity - Cash Receipt Transactions > Flashcards

Flashcards in Assertion and Related Control Activity - Cash Receipt Transactions Deck (13)
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1

Occurrence - Use of a lockbox system

Inquiry of management about lockbox policy.

2

Occurrence - Monthly bank reconciliations prepared and independently reviewed.

Review of monthly bank reconciliation for indication of independent review.

3

Completeness - Checks restrictively endorsed when received and daily cash list prepared

Observation of the endorsement of checks.

4

Completeness - Daily cash receipts reconciled with posting to accounts receivable subsidiary ledger

Testing of the reconciliation of daily cash receipts with posting to accounts receivable subsidiary ledger.

5

Completeness - Customer statements prepared on a regular basis; complaints handled independently

Inquiry of client personnel about handling of monthly statements and examination of resolution of complaints.

6

Accuracy - Daily remittance report reconciled to control listing of remittance advices

Review and testing of reconciliation

7

Accuracy - Monthly bank statement reconciled and independently reviewed

Examination of monthly bank reconciliation for independent review.

8

Authorization - Procedures specifying policies for cash discounts

Testing of a sample of cash receipts transactions for proper cash discounts.

9

Accuracy - Daily remittance report reconciled daily with postings to cash receipts journal and accounts receivable subsidiary ledger

Review and testing of reconciliation

10

Accuracy - Monthly cash receipts journal agreed to general ledger posting

Review of posting from cash receipts journal to the general ledger

11

Accuracy - Accounts receivable subsidiary ledger reconciled to general ledger control account

Examination of reconciliation of accounts receivable subsidiary ledger to general ledger control account.

12

Cutoff - Use of a lockbox system or a control procedure to deposit cash receipts daily

Examination of cash recites for daily deposit.

13

Classification - Chart of accounts

Tracing of cash recites from listing to cash receipts journal for proper classification. Review of cash receipts journal for unusual items.