MARKRICH SPORTSWORLD, INC. PROOF OF CASH-REGULAR CHECKING DECEMBER 31, 19X2
Per Bank Statement
30-Nov $ 15,200
Receipts $ 125,400
A-5 CH 1-13-X3
Disbursements 31-Dec > $ 110,300 > $ 30,300
* Outstanding Checks November 30 December 31 Deposit in Transit November 30 December 31 Non-Sufficient Fund Check Redeposited
$
(12,200) *
(12,200) > 11,400 $
(11,400)
χ
$
$
9,000
900
* $ $
> $
$ $
12,900
(9,000) χ 13,000
>
Bank error check erronously processed against Markrich account Per Books
$ $
Δ $
*
(2,400) > $ 127,000
Ѳ $
$
13,000
Ѳ $
31,900
900
(2,400) > 108,000
A
> Agreed to 12-31-x2 bank statement CH * Agreed to clients 11-30-X2 bank reconciliation CH Agreed to ending balances per bank statement and beginning balances on bank statement for subsequent months CH Traced to December 19X2 cash receipts and deposit tickets and to January 19X3 bank statement CH Examined the cancelled checks which were included with the January 19X3 bank cut-off statement CH Ѳ Disagreed to cash receipts and disbursements for December CH Δ Agreed to General Ledger balances CH χ Traced to November cash receipts and December bank statement CH
Δ
MARKRICH SPORTSWORLD, INC. RECONCILIATION - PAYROLL ACCOUNT DECEMBER 31, 19X2
Balance Per Bank Statement
A-7 CH 1-13-X3
$
1,410
$
(1,410)
Less Outstanding Checks # 941 # 950 # 951 # 959
$ $ $ $
287 443 393 287
j j j j
Balance per Ledger
—0—
A PAYROLL TRANSFER SUN UNITED
SUPER BANK
date per books
date per bank
12-30-X2
12-30-X2
Transfer from regular to payroll account $
9,087
Λ
$
9,087
χ
date per books
date per bank
12-30-X2 9,087
12-31-X2 9,087
$
$
The payroll check transfer was properly recorded. Agreed to ending balance per December, 19X2 bank statement and to beginning balance per January 19X3 bank statement, CH j Examined cancelled checks which cleared with January 19X3 bank statement, CH χ Agreed to bank statements for December 19X2, CH Λ Traced to Cash Disbursements (Check register) for December 19X2, CH Traced to Cash Receipts for December 19X2, CH
χ
MARKRICH SPORTSWORLD, INC. PETTY CASH COUNT DECEMBER 31, 19X2 Denomination
A-9 CH 1-13-X3 Number
Amount
Currency
$ $ $
10.00 5.00 1.00
8 12 20
$ $ $
80.00 60.00 20.00
Silver
$ $ $ $
0.50 0.25 0.10 0.05
8 20 30 20
$ $ $ $
4.00 5.00 3.00 1.00
$
173.00
$ $ $ $
10 10 7 200
Unreimbursed petty cash vouchers Date December 19X2 December 19X2 December 19X2
Payee UPS Handy Shop Handy Shop
Expense Parcel Post Light Bulbs Paper Supplies
A Custodian Acknowledgement The petty cash fund at $ 200 was counted in my presence on 12-31-19X2 and returned intact. Ms. Nicole Petty Cash Custodian Examined Supporting Documents for unreimbursed expenses CH
MARKRICH SPORTSWORLD, INC. PETTY CASH COUNT DECEMBER 31, 19X2 Per Books 12-31-X2
A CH 1-13-X3 Final 12-31-X2
Adjustments
101 Sun United Regular
$
31,900
A-5 $
31,900
102
$
-
A-7 $
-
103
$
200
A-9 $
200
$
32,100
$
32,100
TB-1
Based on the study of internal controls and the request of the audit tests performed, it is my opinion that cash is fairly stated at December 31, 19X2. CH
Compatibility Report for p3.xls Run on 9/13/2007 9:34 The following features in this workbook are not supported by earlier versions of Excel. These features may be lost or degraded when you save this workbook in an earlier file format. Minor loss of fidelity Some cells or styles in this workbook contain formatting that is not supported by the selected file format. These formats will be converted to the closest format available.
# of occurrences 85
MARKRICH SPORTSWORLD, INC. AUDIT PROGRAM CASH December 31, 19X2 By 1 Review and evaluate internal controls for cash 2 Trace sample transactions through the cash records Confirm all bank accounts by using the standard bank 3 confirmation forms Request cutoff bank statements approximately two weeks 4 after end of fiscal year Obtain or prepare year-end reconciliations of all bank 5 accounts, investigate all reconciling items, and trace to appropiate accounts For selected test transactions, review cash records, foot, and 6 trace all postings to appropriate accounts Schedule and investigate all inter-bank transfers for one week 7 before and after fiscal year-end Count all cash on hand and trace to appropriate accounts; 8 cash counts should be coordinated with inspection of all other negotiable items Review transactions in selected petty cash reimburse-ments; 9 coordinate review with count of cash funds 10 Trace beginning cash balances to prior year workpapers Review all disbursements (in excess of $500) subse-quent to 11 year end; coordinate with audit program for accounts payable 12 Ascertain proper presentation of cash in financial statement
Ref.
Remarks
CH CH CH CH CH
A-5
CH CH
A-7
CH
A-9
CH CH CH CH
The payroll transfer was the only transfer
