procedures

Question 1

bank and cash procedures

Answer 1

• obtain bank reconciliation, cast to ensure arithmetic accuracy
• agree balance per cash book to post ye cashbook to ensure accuracy and valuation
• agree balance of bank statement per post ye bank statement and bank confirmation letter
• trace outstanding lodgements and unpresented cheques to pre ye cashbook and post year end bank statement
• inspect FS for sny large/outstandin bank transfers that may be a sign of window-dressing

Question 2

receivables

Answer 2

• calculate receivable period and compare it to last year to find differences
• obtain ages listing report and cast it to ensure arithmetical accuracy
• obtain aged receivables report and identify any slow moving receivables and if they should be written off
• inspect credit notes for any additional allowance for receivables should be given
• inspect board minutes, discuss if there are any material disputed receivables that should be written off

Question 3

payables

Answer 3

• calculate payable period and compare to last year to identify any differences
• obtain list of TP ad cast it to ensure arithmetical accuracy
• reconciles total individual payable accounts and compare with contain control accounts
• enquire with management about their methods of identifying receivables but not invoiced to ensure it is accurate
• compare list of TP an accruals to last year to identify and significant omissions