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Auditing

Essay by   •  September 8, 2016  •  Exam  •  359 Words (2 Pages)  •  1,089 Views

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WEEK 10 Class Exercise

The following questions pertain to issues that could arise during the collection of audit evidence regarding Sales & Ac Receivable:

  1. Journal Entry Recorded:

 

Details

Debit

Credit

Dr Ac Receivable

Cr Sales

$5200

$5200

Dr COGS

Cr Inventory

$4000

$4000

The Related sales invoice (No. 12345) generated by the client’s information system for testing as shown below:

INVOICE

Date: June 27th 2015

Invoice # 12345

[pic 1]It’s a GOODBUY!

GoodBuy.com

1, Web Street

Melbourne 3000

TO

Justin

Unit 1/2

Goodwill Street

Bayside 3159

03 98784554

Customer ID  : AUS0099

Customer Order No : 789456

SHIP TO

Justin

Unit 1/2

Goodwill Street

Bayside 3159

03 98784554]

Customer ID:  AUS0099  

Shipping Reference: 789456

Fed Ex Tracking No: 8782134568794513

SALES

PERSON

SHIPPING METHOD

SHIPPING TERMS

DELIVERY DATE

PAYMENT TERMS

DUE DATE                                                

Alice

By Weight

Fed Ex

FOB Destination

July 3rd 2015

     30 Days

July 26

QTY

ITEM #

DESCRIPTION

UNIT PRICE

DISCOUNT

LINE TOTAL

1

AC 001

Air Compressor

$2500

$0

$2500

1

OP 007

Oil Pump

$3000

$300

$2700

TOTAL DISCOUNT

$300

$5200

SUBTOTAL

$5200

SALES TAX

$520

TOTAL

$5200

[No Cash.  Credit Card payments or bank  transfer to Goodbuy.com Acc No 00501 123789]

Thank you for your business!

The following questions pertain to issues that could arise during the collection of audit evidence regarding Purchases/Expenses :

Journal Entry Recorded:

 

Details

Debit

Credit

Dr Asset/Expense

Cr Ac Payable

$5200

$5200

  1. The following invoice was received by the client from their supplier

INVOICE(SUPPLIER) 

Date: June 27th 2015

Invoice # 12345

[pic 2]It’s a GOODBUY!

GoodBuy.com

1, Web Street

Melbourne 3000

TO

Justin

Unit 1/2

Goodwill Street

Bayside 3159

03 98784554

Customer ID  : AUS0099

Customer Order No : 789456

SHIP TO

Justin

Unit 1/2

Goodwill Street

Bayside 3159

03 98784554]

Customer ID:  AUS0099  

Shipping Reference: 789456

Fed Ex Tracking No: 8782134568794513

SALES

PERSON

SHIPPING METHOD

SHIPPING TERMS

DELIVERY DATE

PAYMENT TERMS

DUE DATE                                                

Alice

By Weight

Fed Ex

FOB Destination

July 3rd 2015

     30 Days

July 26

QTY

ITEM #

DESCRIPTION

UNIT PRICE

DISCOUNT

LINE TOTAL

1

AC 001

Air Compressor

$2500

$0

$2500

1

OP 007

Oil Pump

$3000

$300

$2700

TOTAL DISCOUNT

$300

$5200

SUBTOTAL

$5200

SALES TAX

$520

TOTAL

$5200

[No Cash.  Credit Card payments or bank  transfer to Goodbuy.com Acc No 00501 123789]

Thank you for your business!

...

...

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