Question

In: Accounting

Assume you are the senior accountant on an audit engagement of a fictitious business, Pine Street...

Assume you are the senior accountant on an audit engagement of a fictitious business, Pine Street Company (PSC). Assume the instructor is the engagement partner. You are to prepare an audit program for PSC. The firm manufactures and sells bicycles. The audit program must be in one of the following areas of the business: accounts receivable and revenues; inventories and costs of goods sold; accounts payable; payroll; or property, plant and equipment.

Identify the components/sections of a cash audit program for PSC. Please no cursive.

Solutions

Expert Solution

Audit Programme for Payroll

Aspect to be Verified by Auditor

(Tick) if Done

Remarks

Preparatory

Understand the HR function prevalent in the enterprise

Is there a computerised system for payroll functions

Attendance of Employees

Obtain payroll register / attendance details

How is attendance updated?

Is there a biometric system to record time - in and time-out?

Are the leave days taken by employees properly taken into account for salary calculations?

Computation

Obtain salary calculations

Are the statutory deductions like Provident fund, medical insurance, other funds properly calculated and deducted?

Check the salary computation statements given

Payment of Salary

Are the salary credits made to employees' bank accounts?

Who authorizes salary payments? Is there proper control?

Are the pay slips/ vouchers are signed by employees?

Accounting

Is the payment of salary properly accounted?

Compare the accounting entries with computations

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

Assume you are the senior accountant on an audit engagement of a fictitious business, Pine Street...
Assume you are the senior accountant on an audit engagement of a fictitious business, Pine Street Company (PSC). Assume the instructor is the engagement partner. You are preparing an audit program for PSC. The firm manufactures and sells bicycles. The audit program must be in one of the following areas of the business: accounts receivable and revenues; inventories and costs of goods sold; accounts payable; payroll; or property, plant, and equipment.   what do you learn from the audit program and...
Assume you are the senior accountant on an audit engagement of a fictitious business, Pine Street...
Assume you are the senior accountant on an audit engagement of a fictitious business, Pine Street Company (PSC). Assume the instructor is the engagement partner. You are to prepare an audit program for PSC. The firm manufactures and sells bicycles. The audit program must be in one of the following areas of the business: accounts receivable and revenues; inventories and costs of goods sold; accounts payable; payroll; or property, plant and equipment. Submit an audit program for one of the...
Assume you are the senior accountant on an audit engagement of a fictitious business, Pine Street...
Assume you are the senior accountant on an audit engagement of a fictitious business, Pine Street Company (PSC). Assume the instructor is the engagement partner. You are to prepare an audit program for PSC. The firm manufactures and sells bicycles. The audit program must be in one of the following areas of the business: accounts receivable and revenues; inventories and costs of goods sold; accounts payable; payroll; or property, plant, and equipment. Week 6 - Submit an audit program for...
Assume you are the senior accountant on an audit engagement of a fictitious business, Pine Street...
Assume you are the senior accountant on an audit engagement of a fictitious business, Pine Street Company (PSC). Assume the instructor is the engagement partner. You are to prepare an audit program for PSC. The firm manufactures and sells bicycles. The audit program must be in one of the following areas of the business: accounts receivable and revenues; inventories and costs of goods sold; accounts payable; payroll; or property, plant and equipment. Week 1 – Assume you are applying for...
As part of the fieldwork of an audit engagement, the senior on the audit obtained and...
As part of the fieldwork of an audit engagement, the senior on the audit obtained and documented an understanding of the company's internal control relating to accounts receivable and assessed control risk related to accounts receivable at the maximum level. Alejandro, the staff person assigned to the engagement, requested and obtained from the company an aged accounts receivable schedule listing the total amount owed by each customer as of December 31, 2017, and sent positive confirmation requests to a sample...
As part of the fieldwork of an audit engagement, the senior on the audit obtained and...
As part of the fieldwork of an audit engagement, the senior on the audit obtained and documented an understanding of the company's internal control relating to accounts receivable and assessed control risk related to accounts receivable at the maximum level. Alejandro, the staff person assigned to the engagement, requested and obtained from the company an aged accounts receivable schedule listing the total amount owed by each customer as of December 31, 2017, and sent positive confirmation requests to a sample...
As part of the fieldwork of an audit engagement, the senior on the audit obtained and...
As part of the fieldwork of an audit engagement, the senior on the audit obtained and documented an understanding of the company's internal control relating to accounts receivable and assessed control risk related to accounts receivable at the maximum level. Alejandro, the staff person assigned to the engagement, requested and obtained from the company an aged accounts receivable schedule listing the total amount owed by each customer as of December 31, 2017, and sent positive confirmation requests to a sample...
As part of the fieldwork of an audit engagement, the senior on the audit obtained and...
As part of the fieldwork of an audit engagement, the senior on the audit obtained and documented an understanding of the company's internal control relating to accounts receivable and assessed control risk related to accounts receivable at the maximum level. Alejandro, the staff person assigned to the engagement, requested and obtained from the company an aged accounts receivable schedule listing the total amount owed by each customer as of December 31, 2017, and sent positive confirmation requests to a sample...
As part of the fieldwork of an audit engagement, the senior on the audit obtained and...
As part of the fieldwork of an audit engagement, the senior on the audit obtained and documented an understanding of the company's internal control relating to accounts receivable and assessed control risk related to accounts receivable at the maximum level. Alejandro, the staff person assigned to the engagement, requested and obtained from the company an aged accounts receivable schedule listing the total amount owed by each customer as of December 31, 2017, and sent positive confirmation requests to a sample...
You are the audit senior on the audit engagement of Brown’s Farm Produce. You have assigned...
You are the audit senior on the audit engagement of Brown’s Farm Produce. You have assigned the role of identifying subsequent events for this audit client to Brian Peters who is Senior Associate with your firm. This is his first subsequent events review. The following information pertains to the audit engagement of Brown’s Farm Produce. i)  Detailed audit work was completed on Thursday 5 December 1997. ii)  The proposed audit report sign date is Friday 19 December 1997. iii)  It is proposed that...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT