4 pages/≈1100 words
Business & Marketing
Accounting (Case Study Sample)
I'm living in singapore. And here's the question. As a Senior Audit Assistant, you are carrying out the audit of trade accounts payable and accruals of Golden Star Pte Ltd. The company operates a central warehouse to which all raw materials are delivered. Stores keeper checks all deliveries for quantity and quality to the delivery note, and the stores receptionist completes a good received note, keeping one copy and sending one copy to the purchase ledger department. The purchase ledger department receives invoices, and when details have been checked as correct, invoices are posted to the purchase ledger. Accounts with suppliers are settled monthly. Required Prepare a report describing the audit work you will carry out: (a) To confirm purchase cut-off is correct (b) To confirm balances on the purchase ledger (c) To confirm accruals (you can assume the only accruals are Goods and Service Tax and unpaid utilities) Thank you. I'll be attaching my lecture notes as well. source..
Running Head: Accounting
Insert Course Title
Insert Instructor`s Name
Purchase cut-off procedure
In this analysis, I will provide an intense review on the record of purchases that were undertaken during the current transaction period. The procedure ascertains the recording of all the transactions undertaken during the current period. Lack of such undertaking will provide the Company with the likelihood of most of the transactions being unrecorded. In most cases where the Company closes its accounts before the year end, the risks of vendor`s invoices becoming unrecorded are high. The procedure to be followed in order to ascertain the correctness of the records presented by Golden Star Pate Ltd on purchase of stock includes;
Ensuring that the year end goods received, that is notes payables and the related purchase invoices are correctly treated in the current period of occurrence. This is done by verification of notes payables through the comparison of the serial numbers of the last received stock and the serial number of the last stock check issued.
Examination of the presence of unmatched invoices will be put into consideration. I will analyze the details of stock dispatch from the distributor and those of receipt by the Company and also ascertain the dates with which the transactions took place. I will also ascertain the unrecorded invoice form the distributor. Based on risk assessment ands materiality, examination of subsequent payments in the case of agency obligations is of consequent importance. This entails comparison of the current year-end and prior year-end balances in order to establish any unusual items.
Finally, I will take a sample of goods received from the distributor and the goods dispatched just after the year end and verify its invoice serial numbers. This will ensure that the related stock was not included in the count in the case of goods received for the current period.
Purchase ledger balances
This provides an inherent clarification on the balances recorded on the books of account. The Internal Control System ensures that the purchases are recorded in accordance to the transactions that occurred in the current period. This will minimize any consequent loss and damage to the company`s reputation as the information provided in the financial statements will not be a representation of the true and fair view of the Company`s records.
In order to determine that the purchases amount recorded are in agreement with invoices and supporting documents recorded and in the current transaction period, I would follow the following procedure; Review the accounts payables maturity, testing the clerical accuracy of the accounts posted in the...
Get the Whole Paper!
Not exactly what you need?
Do you need a custom essay? Order right now:
- AccountingDescription: Business and Marketing Case Study: Accounting...4 pages/≈1100 words | 1 Source | Other | Business & Marketing | Case Study |
- Similarities as well as differences with regard to market positions together with business-l. . .Description: Business and Marketing: Similarities as well as differences with regard to market positions together with business-level strategies in Gucci...3 pages/≈825 words | No Sources | Other | Business & Marketing | Case Study |
- Appropriate Measure of Service for the CSRsDescription: Appropriate measure of service for the CSRs and the way the call monitoring system can be used for effectively managing the level of service...2 pages/≈550 words | No Sources | Other | Business & Marketing | Case Study |