- Reiner Braun's Body Armor maintained books on a cash basis for the 2020 calendar year
- As external auditor, you were tasked with auditing the cash, inventory, and accounts receivable accounts
- Your working papers include the company's trial balance as of December 31, 2020 and various audit notes pertaining to procedures performed for cash
- Audit Note #1 lists items that comprise the reported cash balance of P448,000, including bank accounts, stamps, checks, treasury bills, and a petty cash fund
- Audit Note #1.1 details a bank reconciliation performed for the Metrobank account that revealed discrepancies compared to the bank statement
- Audit Note #1.2 lists the
- Reiner Braun's Body Armor maintained books on a cash basis for the 2020 calendar year
- As external auditor, you were tasked with auditing the cash, inventory, and accounts receivable accounts
- Your working papers include the company's trial balance as of December 31, 2020 and various audit notes pertaining to procedures performed for cash
- Audit Note #1 lists items that comprise the reported cash balance of P448,000, including bank accounts, stamps, checks, treasury bills, and a petty cash fund
- Audit Note #1.1 details a bank reconciliation performed for the Metrobank account that revealed discrepancies compared to the bank statement
- Audit Note #1.2 lists the
- Reiner Braun's Body Armor maintained books on a cash basis for the 2020 calendar year
- As external auditor, you were tasked with auditing the cash, inventory, and accounts receivable accounts
- Your working papers include the company's trial balance as of December 31, 2020 and various audit notes pertaining to procedures performed for cash
- Audit Note #1 lists items that comprise the reported cash balance of P448,000, including bank accounts, stamps, checks, treasury bills, and a petty cash fund
- Audit Note #1.1 details a bank reconciliation performed for the Metrobank account that revealed discrepancies compared to the bank statement
- Audit Note #1.2 lists the
- Reiner Braun's Body Armor maintained books on a cash basis for the 2020 calendar year
- As external auditor, you were tasked with auditing the cash, inventory, and accounts receivable accounts
- Your working papers include the company's trial balance as of December 31, 2020 and various audit notes pertaining to procedures performed for cash
- Audit Note #1 lists items that comprise the reported cash balance of P448,000, including bank accounts, stamps, checks, treasury bills, and a petty cash fund
- Audit Note #1.1 details a bank reconciliation performed for the Metrobank account that revealed discrepancies compared to the bank statement
- Audit Note #1.2 lists the
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Reiner Braun’s Body Armor, a calendar year sole-proprietorship, maintained its books on the
cash basis during the year.
As the External Auditor of the Corporation, you were tasked by your Senior to Audit 3 Connected Accounts “Cash, Inventory and Accounts Receivable”
The following information are all attached in your working paper, Audit Procedures, Evidences and other pertinent data are listed below in your working paper. In 000’s
Audit Note #1 Cash compose the following information that is in custody of Reiner Braun 1. Current account at Metrobank P244,000 2. Current account at BPI (10,000) 3. Payroll account 50,000 4. Foreign bank account – restricted (in equivalent pesos) 100,000 5. Postage stamps 100 6. Employee’s post-dated check 400 7. IOU from controller’s sister 1,000 8. Credit memo from a vendor for a purchase return 2,000 9. Traveler’s check 5,000 10. Not-sufficient-funds check 1,500 11. Money order 3,000 12. Petty cash fund 1,000 13. Treasury bills, due 3/31/21 (purchased 12/31/20) 20,000 14. Treasury bills, due 1/31/21 (purchased 1/1/20) 30,000 448,000 Audit Note #1.1 To Auditor has requested a bank statement from BPI bank which was confirmed to be True. However, for the Metro Bank, the Auditor has requested a Bank Statement. And Recalculation of the bank Reconciliation The Bank Statement revealed the following:
The bookkeeper of Reiner Braun recently prepared the following bank reconciliation on December 31, 2020: Balance per bank statement . 200,000 Add: Deposit in transit 31,000 Checkbook and other bank charge 16,500 Error made by Levi and Joan in recording check No. 1005 (issued in December) 17,500 Customer check marked DAIF 21,000 86,000 Total 286,000 Deduct: Outstanding checks 19,000 Note collected by bank (includes P2,000 interest) 23,000 42,000 Balance per book 2 4 4 ,0 0 0
Audit Note#1.2
You also wanted to check out the composition of the client’s Petty Cash fund the following information is available:
December 31, 2020:
Currencies and coins 47 Vouchers for expenses during the year: Office supplies 15 Postage stamps 5 Transportation 1 Total Vouchers 21 21 IOU notes of several employees all dated December 2020 25 Unused postage stamps 1 Replenishment check drawn by the Company payable to the order of petty cash custodian 15 Check received from customers representing sales for the month of December 17 Check received from Doug, an officer, dated December 30, 2020 20 Envelope containing contributions from employee for filed trip in Taytay Rizal 50 The Petty Cash Fund of Reiner Braun Company has an impress balance of P1,000. The following items are found in its drawer on
