Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. • what should auditor do when risk of fraud with

• What should auditor do when risk of fraud with regards to cash is increased? • What are...

50.1K

Verified Solution

Question

Accounting

•What should auditor do when risk of fraud with regards to cash isincreased?
• What are the aspects of control that auditors are mostconcerned about for sales and collection cycle?
• What are the significant factors about cutoff forsales/collection cycle?





Answer & Explanation Solved by verified expert
4.1 Ratings (490 Votes)
1 The following may be used by auditor to detect increasing fraud on cash activities Bank Reconciliation Tracking transfers to the bank statements Tracking the reconciled items in the subsequent period Trace interbank transfers by preparing Bank Transfer Schedule for detecting the possibility of kiting Trace cash receipts to bank deposit slips by tabulating the details of cash receipts documentation s and bank deposits for detecting skimminglapping Trace cash receipts from cash sales to sales register Make a surprise cash checks 2 1 Proper Segregation of duties Management should deny cash access to anyone responsible for entering sales and cash receipts transaction information into the computer The creditgranting function should be separated from the sales function because credit checks are intended to offset the natural tendency of sales personnel to optimise volume even at the expense of high bad debt writeoffs Personnel responsible for doing internal comparisons should be independent of those entering the original data 2 Proper Authorisation The auditor is concerned    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Why don't we just use a detergent to lyse the RBCs?

Medical Sciences
Q

1- Which of the following would be appropriate actions following transcutaneous pacing? Consult a specialist. Follow VT/VF algorithm Administer...

Medical Sciences
Q

When an object is located very far away from a convex mirror, the image of the...

Physics
Q

During Heaton Company’s first two years of operations, it reported absorption costing net operating income as...

Accounting
Q

Solve the problem A company performs quality control on its juice bottles It finds that...

Statistics
Q

The goal is to evaluate A VxF nds v where F 5yz 3xz 5xy and...

Calculus
Q

help me solve this please Required information Problem 8-29 (Algo)...

Accounting
Q

On January 1, Year 1, Price Company issued $116,000 of five-year, 4 percent...

Accounting
Q

1 Exercise 9-3A (Algo) Horizontal and vertical analysis LO 9-1 8 points Income statements for...

Accounting
Q

Below is a list of independent transactions. For each transaction, identify which section of the...

Accounting
Q

Calculate the actual machine hours used during October. A. 615 hours B. 602 hours C....

Accounting
Q

Question Completion Status QUESTION 23 A survey was conducted to examine whether than shades and...

Accounting