\n<\/p>\n

<\/p>\n

Assignment:<\/strong> Over the past year, it has been determined that there may be some
\ncontrol issues in each of the major transaction cycles. The following is
\na chart of each cycle with the areas of concern identified. (Already have been pre-selected)<\/p>\n

Transaction Cycles\/Areas of Concern<\/strong> <\/p>\n

1.)The procurement and payment cycle <\/u><\/p>\n

There were 4,000 purchase orders that totaled $55 M for raw material.
\nThere is concern that not all purchases were completed using formal
\npurchase orders, receipts did not match payment authorizations, and
\npurchase orders were missing. <\/p>\n

2.)The sales and cash receipt cycle <\/u><\/p>\n

There were 15,000 invoices totaling $122 M in sales. Unauthorized
\ndiscounts applied to invoices, credit terms applied to invoices may be
\nincorrect, and unaccounted for invoice sequence numbering may be
\npresent. <\/p>\n

For the transaction cycles complete the following: <\/p>\n

\n
• Determine the appropriate methodology for designing tests of controls and substantive tests of transactions. <\/li>\n<\/ul>\n

  Submit a 1-page chart with the following column headings: <\/strong><\/p>\n\n\n\n

  \n Transaction-Related Audit Objective<\/strong> <\/p>\n<\/td>\n

  \n Key Internal Control<\/strong> <\/p>\n<\/td>\n

  \n Common Test of Control<\/strong> <\/p>\n<\/td>\n

  \n Common Substantive Test of Transactions<\/strong> <\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n In preparation for the year-end audit at Bovar Company, you will create a presentation to management for its approval. Complete the \nfollowing:<\/p>\n \n Present the methodology that he or she developed \nfor his or her transaction cycle which should address the \naforementioned control issues.\n<\/li>\n How to address the identified control issues.\n<\/li>\n Provide an outline regarding the methodology for the 2 major transaction cycles selected and complete the following:\n \n Designing tests of controls\n<\/li>\n Designing substantive tests of transactions <\/li>\n<\/ul>\n<\/li>\n<\/ul>\n All information should be compiled into one cohesive presentation. (Deliverable Length: <\/label> 400\u2013500 words, 8\u201310 slides (not including cover and references) with notes<\/span>) Please include references.<\/strong><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":" Assignment: Over the past year, it has been determined that there may be some control issues in each of the major transaction cycles. The following is a chart of each cycle with the areas of concern identified. (Already have been pre-selected) Transaction Cycles\/Areas of Concern 1.)The procurement and payment cycle There were 4,000 purchase orders […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_joinchat":[]},"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/posts\/265506"}],"collection":[{"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/comments?post=265506"}],"version-history":[{"count":1,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/posts\/265506\/revisions"}],"predecessor-version":[{"id":267255,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/posts\/265506\/revisions\/267255"}],"wp:attachment":[{"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/media?parent=265506"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/categories?post=265506"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/qualityassignments.net\/wp-json\/wp\/v2\/tags?post=265506"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}