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Purpose and Scope of the Audit

   

Added on  2020-02-19

7 Pages1068 Words57 Views
Running head: AUDITAuditName of the studentName of the universityAuthor note

1AUDIT Table of ContentsBackground information............................................................................................................2Purpose of the audit....................................................................................................................2Scope of the audit.......................................................................................................................2Statement of condition...............................................................................................................3Conclusion and recommendation...............................................................................................3References..................................................................................................................................5

2AUDIT Background information The athletic department manages their deposits to business office and then reconcileall the revenues from the sales of the tickets and all these activities are managed by the officemanager only. The company make their deposits on monthly basis and generally it includesmore than $ 2,000 under checks and the receipts related to credit cards. Purpose of the auditGenerally, the check and cash receipts are most of the time subject to themisappropriation if proper control is not followed. Further, as the checks include the bankinformation and name best practice must be maintained for the purpose of reconciliation. Thecash audit will be carried out to ensure that the cash has been properly named and categorizedat the time of preparing the financial statement1. Further, it will assure that the cash balancesand the cash deposits are reconciled properly with regard to the dates that are reported underthe financial statement. The audit will further assist in verifying and obtaining mathematicalaccuracy of the cash related transactions through tracing the opening as well as the closingbalances. Moreover, the audit will assist in recognizing the errors related to deposits,withdrawals, overstatement or understatement of cash2. To assure that the records reveal theexpenses and receipts of cash mentioned in the balance sheet, the auditor shall analyse thecash disbursement and receipts for the specific period prior to the financial statement. 1Agostino, Frank, Jairo G. Cano, and Matthew Turtoro. "How to Report Cash Receipts and Payments."J. TaxPrac. & Proc.16 (2014): 21.2LaShaw, Margie Ness, Tara Lambert, and David Sloan. "Implementing Faith in Accounting: Application in aStudent Auditing Project Through Service to the University."Christian Business Academy Review11.1 (2016).

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