Project #4721 - Accounting-Auditing

                          Project

 

 

 

 

 

1. The town of Bullet Park operates a public parking lot near the railroad station for the benefit of town members. The guard on duty issues annual prenumbered parking stickers to residents who submit an application form and show evidence of residency. The sticker is affixed to the auto and allows the resident to park anywhere in the lot for 12 hours if the resident deposits 8 quarters in the parking meter. Applications are maintained in the guard office at the lot.  The guard checks to see that only residents are using the lot and that no resident has parked without paying the required meter fee.

 

 

 

 Once a week the guard on duty who has a master key for all meters takes the coins from the meters and places them in a locked steel box. The guard delivers the box to the town storage building , where a storage department clerk opens the box, counts the coins, and records the total cash counted on a "Weekly Cash Report" (which is sent to the town accounting department), and puts the cash in a safe. On the following day, the town’s treasurer picks up and recounts the cash, prepares the bank deposit slip, and delivers the deposit to the bank. The deposit slip, authenticated by the bank teller, is sent to the accounting department where it is filed with the "Weekly Cash Report."

 

 

 

Required: Describe deficiencies in the existing system and recommend one or more improvements for each of the deficiencies to strengthen control activities over the parking lot cash receipts.

 

 

 

Organize your answer sheet as follows:

 

 

 

Weakness                                                        Proposed remedy

 

 

 

 

 

2. The Art Appreciation Society operates a museum for the benefit of the community. During hours when the museum is open to the public, two clerks are positioned at the entrance and collect a $5 admission fee from each nonmember patron. Members of the Society are permitted to enter free upon presentation of their membership cards.

 

At the end of each day, one of the clerks delivers the proceeds to the treasurer.  The treasurer counts the cash in the presence of the clerk and places the cash in a safe.  Each Friday afternoon the treasurer and one of the clerks deliver all of the cash in the safe to the bank and receive a deposit slip that drives a weekly entry in the cash receipts records.

 

The Treasurer enters the cash receipts in the cash journal and reconciles the bank statement at the end of the month.

 

The Society has an administrative assistant who writes the checks for cash disbursements. She creates a voucher package which includes the purchase requisition, purchase order and invoice. However the treasurer signs the checks. The Treasurer enters the checks into the cash payments journal. He then returns the voucher package back to the administrative assistant for filing.

 

The Board of Directors has identified a need to improve the system of internal controls over cash.  The Board has determined that the cost of installing turnstiles or sales booths would greatly exceed the benefits. However the Board agrees that controls over the sale of admission tickets needs improvement.

 

1)    The Board wants you to audit the cash account of the Society.

 

For each transaction –related audit objective for sales, a) list key existing controls, b) test of controls, c) deficiencies in controls, and d) test of transactions.

 

 

 

Subject Mathematics
Due By (Pacific Time) 04/21/2013 10:00 pm
Report DMCA
TutorRating
pallavi

Chat Now!

out of 1971 reviews
More..
amosmm

Chat Now!

out of 766 reviews
More..
PhyzKyd

Chat Now!

out of 1164 reviews
More..
rajdeep77

Chat Now!

out of 721 reviews
More..
sctys

Chat Now!

out of 1600 reviews
More..
sharadgreen

Chat Now!

out of 770 reviews
More..
topnotcher

Chat Now!

out of 766 reviews
More..
XXXIAO

Chat Now!

out of 680 reviews
More..
All Rights Reserved. Copyright by AceMyHW.com - Copyright Policy