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Unformatted text preview: Stephanie HallHawkins AC410-01 Unit 4 Project 7-38 A B C 1.Vendor Invoices External High Liability/Existence 2.Vendor monthly statements External High Liability/Obligation 3.Sales invoices Internal Moderate Asset/Existence 4.Shipping documents for sales Internal Moderate Asset/Completeness 5. Bank statements External High Asset/Existence 6.Employee payroll time cards Internal High Liability/Existence 7.Receiving reports for goods received from vendors Internal Moderate Liability/Obligation 8.Sales contracts Internal High Liability/Existence 9.Purchase commitment contracts External High Liability/Existence 10.Lease agreements Internal High Liability/Obligation 11.Estimated warranty schedules Internal Moderate Asset/Rights 12.Purchase order stored on clients computer and received electronically Internal Moderate Asset/Existence 13.Credit rating reports External High Assets&Liabilities/ Rights&Obligations 14.Vendor invoice stored on client computer and received electronically External Moderate Liability/Existence 7-44 A B 1. Existence Confirming receivables with consumers will verify that the customers did order and receive the correct merchandise 2. Existence Visually inspecting the inventory will verify that the components exist 3. Existence &Valuation Observing the client taking inventory is a common practice to establish existence and valuation 4. Valuation Comparing the clients year-end bank statement with a cut-off bank statement would be a sampling way of verifying information 5. Existence Observing an inventory of sheet metal might be more accurate since determining the value might be easier 6. Valuation Confirming the client’s year-end bank balance with the bank would be a much less biased confirmation 7. Valuation & Allocation Developing an independent spreadsheet is a good way of comparing expected relationships...
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- Spring '10
- Balance Sheet, Financial audit