Chapters 8 Acquisition and Expenditure Cycle Accounting 4081Chapters 8.

Slides:

Advertisements

Similar presentations

Auditing the Purchasing Process

Advertisements

Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin 14-1 Chapter Fourteen Auditing Financing Process: Prepaid Expenses.

Audit of Acquisition Cycle and Inventory

Sources of Accounts Payable

CHAPTER 15 Auditing the Expenditure Cycle Spring 2007

Modern Auditing: Assurance Services and the Integrity of Financial Reporting, 8 th Edition Modern Auditing: Assurance Services and the Integrity of Financial.

Chapter 6 Audit of Cash Accounting 4081Chapter 6.

Auditing the Financing/Investing Process: Prepaid Expenses; Intangible

Copyright  2003 Pearson Education Canada Inc. CHAPTER 16 Audit of the Acquisition and Payment Cycle.

Purchases & Cash Disbursements Transactions By David N. Ricchiute

Audit Field Standards: Audit of Purchasing and Account Payables Session 10.

Property, Plant, and Equipment; Depreciation and Depletion.

Audit Procedures for Misappropriation of Assets Pertemuan XXIV Matakuliah: F0184/Audit atas Kecurangan Tahun: 2007.

Chapter 17 Auditing the Investing and Financing Cycles Spring 2007.

Copyright © 2003 McGraw-Hill Ryerson Limited Chapte r Acquisition and Expenditure Cycle Including Audit of Accounts Payable and Inventory Existence.

ACQUISITION AND EXPENDITURE CYCLE ELEMENTS OF THE ACQUISITION AND EXPENDITURE CYCLE BALANCES –ACCOUNTS PAYABLE –NOTES PAYABLE –PREPAID ASSETS –INVENTORY.

Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

©2012 Prentice Hall Business Publishing, Auditing 14/e, Arens/Elder/Beasley Audit of the Acquisition and Payment Cycle: Tests of Controls, Substantive.

Chapter 11 Auditing the Purchasing Process McGraw-Hill/Irwin ©2008 The McGraw-Hill Companies, All Rights Reserved.

Cash and Financial Investments. McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc., All Rights Reserved Internal Control Over --Cash Receipts.

Learning Objectives LO1 Describe the purchases, payables, and payments process, including typical risks, transactions, account balances, source documents,

8-1 Chapter 8 Acquisition and Expenditure Cycle “Show those numbers to the damn auditors and I'll throw you out the window.”----(Buddy Yates, director.

Chapter 12 Auditing Acquisitions and Payments

Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin.

Slide © The McGraw-Hill Companies, Inc., 2006 Property, Plant, and Equipment; Depreciation and Depletion l At the same time, we also look at:  Gain.

Auditing the Purchasing Process

Auditing the Purchasing Process

©2003 Prentice Hall Business Publishing, Essentials of Auditing 1/e, Arens/Elder/Beasley Audit of the Acquisition and Payment Cycle: Tests of Controls,

Slide © The McGraw-Hill Companies, Inc., 2006 Accounts Payable and Other Liabilities l Besides Accts Payable: FAccrued Liabilities FMisc. S/T Liabilities.

©2010 Prentice Hall Business Publishing, Auditing 13/e, Arens/Elder/Beasley Audit of the Acquisition and Payment Cycle: Tests of Controls, Substantive.

10-1 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Auditing the Payroll Cycle. Transactions Personnel services or payroll cycle involves the activities that pertain to executive and employee compensation.

Chapter 10 Cash and Financial Investments McGraw-Hill/Irwin

©2006 Prentice Hall Business Publishing, Auditing 11/e, Arens/Beasley/Elder Audit of the Acquisition and Payment Cycle: Tests of Controls, Substantive.

Chapter 13 Property, Plant, and Equipment: Depreciation and Depletion

Revenue and Collection Cycle

Auditing Investments and Cash Balances. Auditing the Investments In the previous chapter has been discussed the auditing of financing cycle. The possible.

Audit of Cash Balances Chapter Learning Objective 1 Show the relationship of cash in the bank to the various transaction cycles.

1 CHAPTER 17 Audit of the Acquisition and Payment Cycle: Tests of Controls, Substantive Tests of Transactions, and Accounts Payable.

Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin 11-1 Expense and Liability Recognition Expenses are outflows.

Chapter 14 Accounts Payable and Other Liabilities McGraw-Hill/Irwin

CHAPTER 17 ACQUISITION CYCLE: TESTS OF CONTROL, SUBSTANTIVE TESTS OF TRANSACTIONS, ACCOUNTS PAYABLE.

Audit of the Acquisition and Payment Cycle: Tests of Controls, Substantive Tests of Transactions, and Accounts Payable. Chapter 18.

Chapter 9 Production Cycle Accounting 4081Chapter 9.

Chapter 6 Audit of Cash Accounting 4081Chapter 6.

13-1 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Finance and Investment Cycle

Accounts Payable and Other Liabilities Chapter 14.

©2005 Prentice Hall Business Publishing, Auditing and Assurance Services 10/e, Arens/Elder/Beasley Audit of the Acquisition and Payment Cycle Chapter.

Yulazri M.Ak., CPA. Identify the accounts and the classes of transactions in the acquisition and payment cycle.

14-1 Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Audit of Cash Balances Chapter 22.

Chapter 14 Accounts Payable and Other Liabilities McGraw-Hill/Irwin

Audit of the Acquisition and Payment Cycle

Modern Auditing: Assurance Services and the Integrity of Financial Reporting, 8th Edition William C. Boynton California Polytechnic State University at.

Chapter 6 Audit of Cash Accounting 408 Chapter 6.

Acquisition and Expenditure Cycle

Finance and Investment Cycle

Auditing & Assurance Services, 6e

Modern Auditing: Assurance Services and the Integrity of Financial Reporting, 8th Edition William C. Boynton California Polytechnic State University at.

Chapter 11 Accounts Receivable, Notes Receivable, and Revenue

Revenue and Collection Cycle

Chapter 8 Acquisition and Expenditure Cycle

Chapter 9 Production Cycle Accounting 408 Chapter 9.

Purchases and disbursements

Cash and Financial Investments

Acquisition and Expenditure Cycle

Chapter 10: Auditing the Expenditure Cycle

Audit of Acquisition Cycle (Chap. 11 A)

Presentation transcript:

Chapters 8 Acquisition and Expenditure Cycle Accounting 4081Chapters 8

Accounting 408Chapters Internal Control Acquisition of Goods or Services separate functions: authorization, purchasing, receiving, custody, record keeping documents and records: purchase requisition, purchase order, receiving report

Accounting 408Chapter Internal Control (continued) Controls over purchase of fixed assets Acquired through acquisition cycle Authorizations Budget Subsidiary ledger Materiality Capital v. revenue expenditures Periodic physical inventory Retirement

Accounting 408Chapters 84 1.Internal Control (continued) Accounts Payable steps: match all documents, check accuracy - compare numbers, code account distribution, approve for payment, record payable documents and records: vendor’s invoice, voucher, voucher register, open purchase order file, unmatched receiving reports, unmatched vendor’s invoices, accounts payable trial balance, purchases journal

Accounting 408Chapters 85 1.Internal Control (continued) Cash Disbursements steps: pay from approved voucher, control check signing, mail payment, cancel voucher, record cash payment documents and records: paid voucher file, cash disbursements journal positive pay systems

Accounting 408Chapters Substantive Tests Accounts Payable Confirmations Examine subsequent payments Analytical procedures Vouch transactions Cutoff tests - purchases & cash disbursements Reconcile recorded A/P to monthly statements Examine unmatched receiving reports, purchase orders, and invoices Recompute year-end accruals for accrued lia.

Accounting 408Chapters Substantive Tests (continued) Accounts Payable Existence and Occurrence vouching, confirmation, cut-off tests, reconciling monthly statements Rights and Obligations vouching, confirmation Completeness examining subsequent payments, tracing, cutoff tests, confirmation, reconciling monthly statements, analytical procedures

Accounting 408Chapters Substantive Tests (continued) Accounts Payable Valuation vouch recorded payables, confirmation Presentation and Disclosure compare statement presentation to GAAP related party transactions, determine if any significant debit balances

Accounting 408Chapter Substantive Tests (continued) Fixed Assets Approach - tests of transactions Vouch additions Vouch disposals Examine repairs and maintenance expense Inspect assets Search for unrecorded retirements Examine title and/or tax statements Test for impairments Review depreciation Examine lease contracts Analytical procedures

Accounting 408Chapter Substantive Tests (continued) Fixed Assets Existence and Occurrence observation, vouching additions, search for unrecorded retirements Rights and Obligations vouching, examine title and/or tax statements Completeness analytical procedures, examine title and/or tax statements, cut-off tests, review insurance coverage

Accounting 408Chapter Substantive Tests (continued) Fixed Assets Valuation vouching transactions, review repairs and maintenance expense, test for impairments, review depreciation Presentation and Disclosure compare statement presentation to GAAP related party transactions, pledged assets for loan, review gains/losses for proper presentation, review cost, BV, depreciation, useful lives for proper presentation

Accounting 408Chapters Frauds Fraudulent disbursement schemes Common and expensive frauds Examples fraudulent payments to shell company duplicate payments fraudulent payroll payments personal purchases expense reimbursements check tampering

Accounting 408Chapters Frauds Red flags rounded amount invoices amounts just below approval amounts abnormal volume sequential invoice numbers photocopies of invoices P.O. Boxes (with no other addresses) no listed phone number same vendor and employee addresses multiple vendors at same location examine services accounts

Chapter 114 Review Questions for Discussion Chapter ACCT C.3 8C.6 8C.7

Payroll Cycle Functions HR department Hiring and firing Supervision Cost accounting Payroll accounting Check signing Payroll distribution Accounting 408Chapters 815 Biggest fraud risks ghost employees fictitious hours