This preview shows pages 1–2. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: To DocumentExistence (Overstatements) Insight 18: Cash Tools Tool Primary Purpose 1. Bank confirmation Verify Cash and loan payable balances 2. Proof of cash Identify transactions handled differently by books and bank 3. Bank cutoff statement Verify reconciling items on year end bank reconciliation 4. Bank transfer schedule Detect kiting Insight 19: Improper transfers 1. Booksdifferent periods. 2. Bankone period (but not both) before books. Insight 20 : Accounts Receivable primary evidence: Confirm Examine cash receipts after year-end Examine evidence to determine sale and any related allowances (returns, discounts, bad debts)? Insight 21 Kiting: Use float period to overstate cash Lapping: Steal, then hide by delaying recording of cash receipts Insight 22: Inventory approach Observe counting, Agree inventory counts to inventory tabulation, Test costing (pricing) and footing of tabulation Do they own it?...
View Full Document