FINANCIAL REPORTING & Control I
Fall Semester, 2016
Monday, 6:00 to 9:20 P.M.
October 24 December 5, 2016
Thomas G. Green, MBA, CIA
Gore Business School Room #218 or telephone
OFFICE HOURS: Generall
Outline Day 14
Chapter 20 21 overview
Difference between Payroll and human resources department?
Separation of duties - Human resources, Payroll department, time recording
Types of payroll tests Concerned with overpayments and unauthorized payments
15 Tips on How
Ahead on the Job
1. Smile. Research indicates people who smile are perceived to be more intelligent
than people who dont.
2. Dont spend a lot of time on unimportant things, even if you are good at them.
Set priorities and allot time
Outline Day 2
Chapter 1, 2, & 4 recap:
Types of audit evidence
Understand the types of audits
Mgmt. Responsible for F/S
Difference between Quality Control and Peer Review
Why does CPA profession need ethics?
Outline Day 16
Chapter 22 23 overview
Confirm and through Board meeting minutes
Role of board of directors. What do they actually do?
Capital stock verification? Transfer agent, board meeting minutes
Footnote disclosure for Dividends?
Outline Day 1
Go over class agenda
When you think of auditing, what comes to mind?
Chapter 1 The Demand for Audit and other Assurance Services
World Com Discovered by internal auditors
1. Auditors, tone at the top. Unsupported entry for $500 computer acq
Outline Day 5
Chapter 8 and 9 Recap
Difference between current files and permanent files
Audit risk (risk that an auditor may issue unqualified report for failure to detect material
misstatement either due to error or fraud) and what is acceptable
Outline Day 13
Chapter 18 19 overview
Segregation of duties A/P and Cash receipting/access to cash; A/P and Authorization of
Purchase order, receiving report, and vendors invoice
Treasurer department functions?
A/P vs. Accrued liabilities
Outline Day 6
Chapter 10 and 11 Recap
Internal controls Established by mgmt. to provide reasonable assurance that the company
achieves its objectives and goals, complies with applicable rules and regulations, and uses
company resources efficiently and ef
Outline Day 11
Chapter 14 &15 Recap
Aged trial balance?
Cash receipts; what are the risks?
When to record a sale?
Sales returns and allowances
1. Statistical sampling qu
Outline Day 12
Chapter 16 & 17 overview
Confirmations? When to use each type? Why send out confirmations?
1. Positive confirmations
2. Negative confirmations
3. Blank confirmations
What to do when errors are discovered in the sample
1. Representative of
Outline Day 9
Chapter 14 Audit of Sales and Collections Cycle
Account and classes of transactions in the sales and collection cycle Go over in detail Figure 141 on page 440
Table 14-1 on page 441 goes over the business functions
1. Customer order?
a. Using the accounting equation:
Thus, equity = $76,000
b. Using the accounting equation at the beginning of the year: