Assertion and Related Control Activity - Cash Disbursements Flashcards
(13 cards)
Occurrence - Vendor statements independently reviewed and reconciled to accounts payable records
Review client’s procedures for reconciling vendor statements
Occurrence - Monthly bank reconciliations prepared and reviewed
Review monthly bank reconciliations for indication of independent review
Completeness - Accounting for the numerical sequence of checks
Review and test client’s procedures for numerical sequence of checks
Completeness - Daily cash disbursements reconciled to postings to accounts payable subsidiary records
Review procedures for reconciling daily cash disbursements with postings to accounts payable subsidiary records
Authorization - Checks prepared only after all source documents have been independently approved
Examine indication of approval on voucher packet
Accuracy - Daily cash disbursements report reconciled to checks and EFTs issued
Review reconciliation
Accuracy - Vendor statements reconciled to accounts payable records and independently reviewed
Review reconciliation
Accuracy - Cash disbursement report reconciled with postings to cash disbursement journal and accounts payable subsidiary records
Review and test reconciliation
Accuracy - Monthly cash disbursements journal agreed to general ledger posting
Review of posting from cash disbursements journal to the general ledger
Accuracy - Accounts payable subsidiary records reconciled to general ledger control account
Examination of reconciliation of accounts payable subsidiary records to general ledger control account
Cutoff - Daily reconciliation of checks issued with postings to the cash disbursements journal and accounts payable subsidiary records
Review daily reconciliations
Classification - Chart of accounts
Review cash disbursements journal for reasonableness of account distribution
Classification - Independent approval and review of general ledger account on voucher packet
Review general ledger account code on voucher packet for reasonableness
