PINNACLE_MANUFACTURING_part_3-1

PINNACLE_MANUFACTURING_part_3-1 - PINNACLE...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
PINNACLE MANUFACTURING―PART III Following are control risk matrices and related notes that are used to direct a discussion of the requirements of the case. It should be understood that judgment is a critical element in this case, and accordingly, there often is no single right answer. Computer-prepared matrices using Excel (P1045.xls) are contained on the Companion Website and on the Instructor’s Resource CD-ROM, which is available upon request. They are essentially the same as the matrices on the next two pages. 10-1
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
10-45 (Continued) PINNACLE MANUFACTURING - Part III Control Risk Matrix – Acquisitions Transaction-Related Audit Objective Internal Controls Recorded acquisitions are for goods and services received (occurrence). Existing acquisition trans- actions are recorded (complete- ness). Recorded acquisition transactions are stated at the correct amounts (accuracy). Recorded acquisition transactions are properly included in the master files, and are properly summarized (posting and summarization). Acquisition transactions are properly classified (classifica- tion). Acquisition transactions are recorded on the correct dates (timing). 1. Required use of PO and receiving report with check of completeness C 2. Proper approval C C 3. Segregation of functions C 4. Cancellation of documents C 5. Prenumbering of documents with accounting for sequence C 6. Internal verification of documents/records C C C C C 7. Use of chart of accounts C 8. Procedures requiring prompt processing C 9. Monthly reconciliation of A/P master file with general ledger C Assessed control risk Low Low Low Low Low Low 10-2 0-23
Background image of page 2
10-45 (Continued) PINNACLE MANUFACTURING - Part III Control Matrix - Cash Disbursements
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/20/2010 for the course ACCOUNTING ac555 taught by Professor Shaik during the Spring '10 term at DeVry NY.

Page1 / 5

PINNACLE_MANUFACTURING_part_3-1 - PINNACLE...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online