MARKRICH SPORTSWORLD, INC. AUDIT PROGRAM VOUCHERS PAYABLE December 31, 19X2
G-1
By 1 Review view and and evalu valua ate inte interrnal con contro trols for trad trade e paya ayables les
2
Trace sample transactions through the purchase and disbursement disbursement records
Obtain or prepare a list of year end payables, foot, and trace to general ledger Examine invoices and other appropriate supporting documents 4 for selected year-end payables 3
CH
Ref. G/3,4
CH
CH
G-5
CH
G-5
5
Reconcile payables with monthly statements from creditors and CH consider confirming liabilities with suppliers
G-5
6
Examine any accounts with debit balances for underlying reasons and for possible reclassification
CH
7 Review all vendors from whom significant purchases were made CH during the year for possible confirmations of selected accounts For selected test period(s), foot, and crossfoot voucher register 8 CH and trace all postings to appropriate accounts 9 Trac Trace e be beginn inning ing bal bala ance nce fo for pay payab able less to to pri prio or wo workp rkpapers ers
Remarks
N/A
G/7-12
CH
10 Perform review for for unrecorded unrecorded liabilities liabilities : a. for cash disbursement (in excess of $500) subsequent subsequent to year end, trace to payable list or ascertain that items did not apply to CH period being audited
11
G-6
MARKRICH SPORTSWORLD, INC. AUDIT PROGRAM VOUCHERS PAYABLE (continued) December 31, 19X2
G-2
By b. Examine file of unmatched invoices and other documents supporting purchases to ascertain that they were recorded in proper period
CH
c. Examine vouchers at completion of field work to ascertain that these transactions were recorded in proper period
CH
Ascertain proper financial statement presentation for payable
CH
Ref.
Remarks
MARKRICH SPORTSWORLD, INC. Purchases, Expenses, and Vouchers Payable Yes Is the purchasing department separated from the receiving, accounts payable, and disbursement function?
G-3 No
Remarks
√
14
2 Are competitive bids solicited when feasible?
√
15
3 Are purchases made from approved vendors? Is the subsidiary ledger regularly balanced with the control 4 account?
√
1
√
Are purchases executed on approved, pre-numbered requisitions and purchase orders by authorized personnel?
√
6 Are prenumbered forms accounted for on a regular basis?
√
Are multi-copy, prenumbered receiving reports routed to 7 accounting department for proper matching with other disbursement documentation?
√
5
8
Are unmatched invoices and receiving reports periodically investigated?
9 Are partial deliveries on a purchase order properly recorded?
√
√
10
Is there a formal procedure for distributing invoice amounts to the general ledger?
√
11
Are invoices and other documents reviewed for quantities, prices, and terms, and approved prior to payment?
√
12
Are supporting documents cancelled under the control of the check signer?
√
13
Are returned shipments processed through the shipping department with appropriate routing of documentation
√
Monthly
Monthly
MARKRICH SPORTSWORLD, INC. Purchases, Expenses, and Vouchers Payable Yes Are monthly statements from vendors ageed to open accounts payable?
√
Are services received approved in writing by authorized official?
√
G-4 No
Remarks
MARKRICH SPORTSWORLD, INC. VOUCHERS PAYABLE
G-5 CH 1-30-X3
DECEMBER 31, 19X2
Voucher #
11-1 11-1 11-3 12-0 12-0 12-1 12-1 12-1 12-1 12-1 12-2 12-3 12-3 12-3 12-3 12-3 12-3 12-3 12-4 12-4 12-4 12-4 12-4
62 92 12 32 72 12 32 72 92 12 82 02 32 42 52 62 72 82 12 42 52 62 82
Vendor
Amount
Bowan Supplier Co. Cathy Athletic Goods Co. Davis Manufacturing Elliott Foodware, inc. Emery Supplies Fields Supplies, Inc. Gray Leisure Products Co. Nurdles Mfg.Co John Athletchic Mfg. King Co. Koppers Atheletics L and B Supplies Lace and Lewis Life Mfg Co M and O Goods Pill Bros Power Sporting Goods Mfg Richmond Tax Assesscor Roadway Equipment Sun Leissure Products Tip Top Products Co World Athletic Co Yuma Lawn Mfg Adjustment : Virginia-Wide Power Co. Virginia Dept. of Revenue WABO Radio Specialty Products Co.
$ $ G-7 $ $ $ $ G-8 $ $ $ $ G-9 $ $ $ $ G-10 $ $ $ $ G-11 $ $ $ $ G-12 $ $
7,500 8,500 9,000 11,000 4,000 11,000 10,000 10,500 9,500 6,000 5,000 3,000 11,000 2,300 12,000 6,800 7,000 3,600 13,000 2,087 12,370 5,000 6,000 176,157
G-6 G-6 G-6 G-6
700 2,945 700 400 180,902
$ $ $ $ $
µ µ µ µ µ µ µ µ µ µ µ µ
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µ µ µ µ
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µ µ µ µ µ
√
√ √
j
√ √ √ √
j
√ √ √ √
j
√
√
j
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j
√ √ √ √
j
G 816 306 801 802 301
AJE : Utilities Expense Sales tax Payable Advertising Expense Cost of Sales-Retail Vouchers Payable
$ $ $ $
700 2,945 700 400 $
4,745
Schedule prepared by Client
Agreed with December 31, 19X2 statements from vendors. CH j Selected for confirmation. CH µ Examined approved invoices and cancelled checks and traced to check register for January, 19X3 and February, 19X3. CH √
Footed. CH
MARKRICH SPORTSWORLD, INC. VOUCHER REGISTER (PARTIAL) JANUARY, 19X3
Date
Voucher
Receiving and Invoice* Date
Check No.
Check Date
Vendor
G-6 CH 2-1-X3
Description
# 4
1-013
4 4 4 4 5 5 5 5 6 6 6 6 7 7 7 7 8 8 8 8 11 11 11
1-023 1-033 1-043 1-053 1-063 1-073 1-083 1-093 1-103 1-113 1-123 1-133 1-143 1-153 1-163 1-173 1-183 1-193 1-203 1-213 1-223 1-233 1-243
1-4-X3 1-4-X3 1-4-X4 1-4-X5 1-5-X3 12-30-X2
1-5-X3 1-7-X3 1-7-X3 1-11-X3 1-7-X3 1-7-X3
1736 1750 1760 1761 1758
11
1-253
1-7-X3
1751
Jan
4 5 6 6
Jan
1740
Jan
1741 1731
1-5-X3 1-5-X3
1743 1732
1-5-X3
1-5-X3 1-6-X3 1-5-X3
Adjustment : 1-053 1-083 1-103 1-113
1733 1734 1735 1753 1755
1-4-X5 1-5-X3
1731 1743 1732
Jan
9 U.S. Postmaster Spartan Supllies Pill Bros King Co. Virginia-Wide Power Co. 9 Tax payers Association Brown Auto Service 6 Virginia Dept. of Revenue Best Supplies 9 WABO Radio 6 Specialty Products Co. Field Supplies, Inc. 6 Super Bank 7 Harris and Harris 7 Ms. Nicole Petty Cash 10 Koppers Athletic 10 Chamber of Commerce Lamb Sportwear 7 Life Mfg. Co. 10 Railway Transportation 11 Courtesy Equipment 11 United Way Campaign 11 L and B Supplies Nurdlex Mfg. Co. 10 Red Top Transit
Postage meter Merchandise Merchandise Merchandise Utility Service-December Membership due to 19X3 Repairs in delivery trucks Sales tax for December Promotional Materials Radio ads-December Commission for cosigned mdse-Dec Merchandise Payroll Taxes deposit Retainer, first quarter of 19X3 Miscellaneous expenses Merchandise (shipped 1-4-X3) Membership fee Merchandise (shipped 1-3-X3) sales tax for December Freight-in Maintetnance contract Contribution Merchandise (shipped 1-4-X3) Merchandise (shipped 1-4-X3) Freight-in
Virginia-Wide Power Co. 6 Virginia Dept. of Revenue 9 WABO Radio 6 Specialty Products Co.
Deduct (-) : Utility Service-December Sales tax for December Radio ads-December Commission for cosigned mdse-Dec
Vouchers
Account
Payable
Charged
$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $
300 1,000 3,000 6,000 700 400 300 2,945 400 700 400 3,000 5,738 1,200 170 500 175 400 2,000 450 75 150 400 300 300
$
31,003
$ $ $ $
700 2,945 700 400
$
26,258
Ψ Ψ Ψ Ψ Ψ Ψ Ψ Ψ Ψ Ψ Ψ Ψ Ψ Ψ Ψ Ψ Ψ Ψ Ψ Ψ Ψ Ψ Ψ Ψ Ψ
Amount
807 107 107 107 816 807 812 306 801 801 802 107 305 809 807 107 807 107 107 107 812 807 107 107 107
816 306 801 802
$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $
300 1,000 3,000 6,000 700 400 300 2,945 400 700 400 3,000 5,738 1,200 170 500 175 400 2,000 450 75 150 400 300 300
$
31,003
$ $ $ $
700 2,945 700 400
$
26,258
Shipping Terms
FOB Destination FOB Destination FOB Destination
FOB Destination
FOB shipping Point FOB Shipping Point FOB Destination
FOB Shipping Point FOB Shipping Point
Ψ examined approved vouchers and supporting documents for amounts in excess of $500 in january 19X3
*
Receiving date coincides with invoice date
MARKRICH SPORTSWORLD, INC. VOUCHERS PAYABLE DECEMBER 31, 19X2 Per Books 12-31-X2 301 Vouchers Payable
$
176,157
G CH 31-12-X2 Final 12-31-X2
Adjustments
$
4,745 TB-2
Based on the results of the audit tests performed and the study of internal controls, it is my opinion that vouchers payable at 12-31-19X2 is fairly stated. CH
E-4
$
180,902
MARKRICH SPORTSWORLD, INC. VOUCHERS PAYABLE DECEMBER 31, 19X2 Per Books 12-31-X2 301 Vouchers Payable
$
176,157
G CH 31-12-X2 Final 12-31-X2
Adjustments
$
4,745 TB-2
Based on the results of the audit tests performed and the study of internal controls, it is my opinion that vouchers payable at 12-31-19X2 is fairly stated. CH
E-4
$
180,902