Q8.24 While working on the audit of Cosmopolitan Ltd, you are involved in a review of control activities in the cash disbursement area. As part of your review, you have noted the following procedures:All payments prepared by the clerk include a pre-numbered bank transfer requisition.The bank transfer requisition requires the clerk to confirm that they have performed the following procedures for each payment:checked the additions and prices on the invoiceconfirmed the details on the invoice have been matched to a delivery note by the warehousing departmentverified a valid purchase order exists for the goods.The clerk forwards the bank transfer requisition together with any supporting documentation (invoice and any other relevant correspondence) to the CFO for approval.Required:For each of the three controls identified above:(a) Describe the purpose of the control—what is the control designed to prevent or detect?(b) Identify the account(s) and assertion(s) that this control will have an effect on in the financial report.(c) Give one example of a procedure that could be used to test the control.

hich of the following is an internal control for checks received through the mail?Multiple ChoiceThe cashier prepares a journal entry to record price, quantity sold, and cash received.The accounting department counts the cash, prepares the deposit slip and deposits the cash in the bank.The accounting department compares the cash in the register with the cash count sheet.The mail clerk gives checks and money orders to the person who makes the bank deposit.

Select the correct alternative to complete the sentence pertaining to the revenue and receipts cycle. An Internal Sales Order is authorised by signature by the credit controller before being sent to the warehouse. The objective of this control is to ensure that ______.a.the sale is made to a customer who can pay their accountb.goods are indeed in stock to be despatchedc.the recording of incorrect or incomplete order details is preventedd.the sales order is acted upon timeously

An entity purchases a building and the seller accepts payment partly in equity shares and partly in debentures of the entity. This transaction should be treated in the cash flow statement as follows:a.The purchase of the building should be investing cash outflow and the issuance of shares and the debentures financing cash outflows.b.The purchase of the building should be investing cash outflow and the issuance of debentures financing cash outflows while the issuance of shares investing cash outflow.c.Ignore the transaction totally since it is a noncash transaction. No mention is required in either the cash flow statement or anywhere else in the financial statements.d.This does not belong in a cash flow statement and should be disclosed only in the footnotes to the financial statements.Clear my choice

What features of cash receipt internal control system would be expected to prevent the cash receipts journal and recorded cash sales from reflecting more than the amount shown on the daily deposit slip? * The shipping department then packs the merchandise, arranges transportation with a common carrier, and prepares a shipping document. The shipping document is a multi-copy document that lists the items, gives instructions to the common carrier as to whom and to what the address to ship the merchandise, and may serve as a packing slip for the merchandise. Copies of the shipping document are given to the carrier, and copies are sent to the billing department. All of the above

From following transaction related to Sundar and Co. Prepare Cash Book with two columns, for the months of September, 2019. Date Details Sept. 01 Bank Balance 01 Cash Balance Purchased goods and payment made by cheque 04 08 13 Sold goods for cash Purchased Machinery and payment made by cheque 16 Sold goods and received cheque (deposited same day) 17 Purchased goods for cash from Mrunal 20 Purchased Stationery and paid by cheque 24 Cheque given to Avadhut 27 Cash withdrawn from Bank 30 Paid Rent by cheque 30 Paid Salary Amount (2) 52,000 15,000 15,000 8,000 10,000 12,000 18,000 2,100 1,800 12,000 500 4,000