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Unformatted text preview: Transactlon·Related Common Substantive Tests I(ey Internal Controls Common Tests of Controls ofTransactions There is adequate segregation Discuss with personnel and Review the cash of duties between accounts observe activities. disbursements journal, payable and custody of general ledger, and accounts .-' signed checks. payable master file for large Discuss with personnel and or unusual amounts. * observe activities. Trace the cancelled check to the related acquisitions journal entry and examine Examine indication of for payee name and approval. amount. Examine cancelled check for authorized signature, proper endorsement, and cancellation by the bank. Examine supporting documents as part of the tests of acquisitions. Checks are prenumbered and Account for a sequence of Reconcile recorded cash accounted for. checks. disbursements with the The bank reconciliation is Examine bank reconciliations cash disbursements on the and observe their bank statement (proof of preparation....
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This note was uploaded on 08/27/2011 for the course ACCT 310 taught by Professor Verduzco during the Spring '10 term at University of Texas.
- Spring '10