Auditing Course Project
# | A. Key Internal Control | B. Transaction Related Audit Objectives | C. Test of Control | 1. | Segregation of the purchasing, receiving, and cash disbursement functions | Recorded acquisitions are for goods and services actually received (existence)Recorded cash disbursements are for goods and services actually received (existence) | Discuss segregation of duties with personnel and observe activities. | 2. | Independent reconciliation of the monthly bank statements | Existing cash disbursement transactions are recorded (completeness)Recorded cash disbursement transactions are stated at the correct amounts (accuracy) | Examine file of completed bank reconciliations | 3. | Use of pre numbered voucher packages, properly accounted for | Existing acquisition transactions are recorded (completeness) | Account for a sequence of voucher packages | 4. | Use of pre numbered checks, properly accounted for | Existing cash disbursement transactions are recorded (completeness) | Account for a sequence of checks | 5. | Use of pre numbered receiving reports, properly accounted for | Existing acquisition transactions are recorded (completeness) | Account for a sequence of receiving reports | 6. | Internal verification of document package before check preparation | Recorded acquisitions are for goods and services actually received (existence)Recorded acquisitions are stated at the correct amounts (accuracy)Acquisitions are properly classified (classification)Acquisition transactions are properly included in the master files, and are properly summarized (posting and summarization) | Examine document package for indication of internal verification | 7. | Review of supporting documents and signing checks by an independent, authorized person | Recorded cash disbursements are for goods and services actually received(existence) | Examine checks for signature | 8. | Cancellation of documents prior to signing of the check | Recorded acquisitions are for goods and