How would you test cash sales?
How would you test cash sales?
How would you test cash sales?
tests of sales and cash receipts
- Compare the quantity and description of items on duplicate sales invoices with related shipping documents.
- Trace recorded cash receipts in the accounts receivable master file to the cash receipts journal and compare the customer name, date, and amount of each one.
How will you audit cash sales?
Cash and Check Totals
- Compare deposits to your register and invoice totals.
- Examine deposit slips to find cash and check totals.
- Compare inventory figures to sales figures.
- Complete your cash audit by noting any discrepancies in the amount of inventory removed from stock, cash totals, check totals and deposit totals.
What are the audit procedures for cash and cash equivalents?
Audit Procedures for Cash and Cash Equivalents
- Existence: This is to check if the cash balances on the balance sheet exist at the date of financial statements or not.
- Completeness: This measure checks if the cash balances actually include all the cash transactions that have taken place during the accounting period.
What are the steps in auditing cash balances?
Substantive Procedures for Cash
- Confirm cash balances.
- Vouch reconciling items to the subsequent month’s bank statement.
- Ask if all bank accounts are included on the general ledger.
- Inspect final deposits and disbursements for proper cutoff.
How do you vouch the cash receipts of cash book?
Vouching of Cash Receipts (Debit Side of Cash Book)
- The carbon copies or counterfoils of cash receipt book should be verified.
- Cash receipt should be serially numbered.
- Cash received should be entered on the same date when the cash is actually received.
What is receipt side of cash book?
The receipt side or the debit side of the cash book contains items such as opening balance, cash sales, receipts from debtors, receipts from bills discounted and bills matured, income from investments, sale of investments, sale of fixed assets, loan received, and miscellaneous receipts, etc.
Why is the audit of cash important part of the audit?
Cash auditing is an important part of the audit because investors want to know the accuracy when looking at the company’s financial condition. They look at the current assets which the cash is part of when finding out the condition of the company.
What are the substantive procedures for revenue in ACCA?
Substantive procedures for revenue. These are: Compare the overall level of revenue against prior years and budget and investigate any significant fluctuations. Select a sample of sales invoices and agree the sales prices back to the contracted rates to ensure the accuracy of invoices.
Which is an example of a substantive audit procedure?
Substantive audit procedures are the test designed for collecting the evidence about the business transaction so that the occurrences, validity, existence of the transaction can be verified, and the accuracy of their accounting treatment can be checked. This has been a guide to what is a substantive audit procedure.
What are the different types of substantive procedures?
Types of substantive procedures There are two types of substantive procedures which are substantive analytical procedures and tests of details. Auditors must decide when it is most appropriate to use which type of substantive procedures.
Why are there audit procedures for cash and cash equivalents?
These audit procedures to check for cash and cash equivalents is created in order to ensure that there are no differences in the actual amount the company owns, and the amount it has disclosed on the balance sheet.