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ACC6030-Auditing & Assurance Services

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ACC6030 Auditing & Assurance Services (ACC6030)

   

Added on  2019-10-30

ACC6030-Auditing & Assurance Services

   

ACC6030 Auditing & Assurance Services (ACC6030)

   Added on 2019-10-30

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Running head: AUDITING AND ASSURANCE1Auditing and assuranceStudent NameInstitution
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AUDITING AND ASSURANCE2IntroductionAuditing and assurance refer to the independent examination of financial statements and other related financial records. The main purpose is usually to ensure that the business transactions are carried out according to the set policies and procedures so that it can run smoothly and efficiently. The business should set in place internal controls that will ensure the management policies are followed, and any deviations are corrected using the right measures (Feng, et al.2014). The internal controls ensure the business assets are protected, prevent and detect errors and fraud, ensure completeness and accuracy of the accounting and transaction records and to ensure financial records are prepared in time.AThe store has put in place various controls to ensure sale transactions are carried out well to the satisfaction of the store owner and the customers. The first control is authorization and approval. Before sale clerk can issue any commodity on credit basis, the supervisor authorizes and approves such transaction. This helps the store to deal with bad debts which occur due to issues products to customers who are not credit worthy. The second control is the recording of transactions. The store efficiently records the sale transactions well. The store has pre numbered, three copy multicolored receipts. In case of credit transaction, one receipt is given to the customer, the other one is kept by the sales clerk, and the other one sends to the cashier for reconciliation purposes. The third control employed by this store is physical controls. The store
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AUDITING AND ASSURANCE3management has located the cash register at the entry of the store to prevent theft of the clothes from the store.The fourth control implemented by the store management is segregation of duties. Various duties in this store are performed by various employees. There is no particular point when one employee is responsible for initiating and completing the transaction, for instance, the sale clerk initiates the transaction, the gives the receipts and invoices to the cashier. The supervisor of the store oversees packaging of the clothes into boxes to ensure no extra clothes aresold without being accounted for and that the packed clothes have being invoiced well by confirming the price tags. The last control employed by this store is supervisory controls. The store is run by a responsible supervisor who has been employed in the organization for over ten years. The supervisor ensures that day to day activities are run according to the set management policies and reports any unusual transactions to the store owner for necessary actions.BThe store has also put in place controls that will safe guard the cash related transactions. The first control is the segregation of duties. In this store, the sale clerk initiates transactions and then gives the invoices and the cash to the cashier. The accountant does not handle cash in this store. The supervisor reconciles the transaction of each sale clerk, and after satisfactory adjustments, the supervisor deposits the cash in the bank's lock box. The second control used is personnel controls. The supervisor who has been employed in this store for the last ten years is responsible for depositing cash into the bank's lock box. The owner of the store trusts the supervisor and that is the reason he deposits the cash.
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