Assignment 1

Deadline: August 31, 2018

A. Read the following

 Articles of Incorporation
 Corporate By Laws
B. Scan the books of accounts and available supporting records
C. Draft an Engagement Letter Addressed as Client
D. Prepare audit programs for major accounts
E. Prepare internal control questionnaire for major accounts
F. On Trial Balance and General Ledger
 Foot
 Trace from TB to GL
 Trace GL to TB
 Prove mathematical accuracy of general ledger accounts

Assignment 2
Deadline: September 15, 2018

Cash – General
1. Prove mathematical accuracy of
a. Cash receipts books
b. Cash disbursements books
2. Trace postings from CRB and CDB to the general ledger
3. Vouch the official receipts supporting CRB
4. Vouch cash vouchers supporting CDB
5. Vouch postings in the cash accounts other than those from the CRB and CDB
6. Conduct a cash count – Accomplish cash count form and have it acknowledge by the cash
custodian
7. Prepare a Bank reconciliation dated December 31, 2011
a. To determine OC checks on December 31, 2011, tickmark checks paid by bank in
December 2011 against OC in the November 30, 2011 bank reconciliation and
December CDB.
b. To determine DIT on December 31, 2011, tickmark December 2011 deposit per
bank against DIT in the November 30, 2011 bank reconciliation and CRB
December.
c. Examine supporting Debit memos and Credit memos.
d. From the December 2011 bank statement copy December 31, 2011balance per bank
and from the General Ledger cash account, copy the balance per book.
e. Complete the December 31 bank reconciliation statement.

Accounts Receivable
1. Prove the mathematical accuracy of the sales book.
2. Trace postings of sales book totals to general ledger (in the audit of cash the cash collection
were already vouched)
 3. Trace Official Receipts postings to AR subsidiary ledgers.
4. Trace sales invoice postings to AR subsidiary ledger.
5. Prove the mathematical accuracy of AR subsidiary ledgers.
6. Make an AR aging schedule.
7. Summarize the result of AR confirmation.
8. Reconcile total of aging with balance in the general ledger.
9. Determine the adequacy of the allowance for bad debts.
10. Post to “AR Confirmation Working Papers” subsequent collections of AR.

Inventories
1. Prove postings from purchase invoices to stock cards.
2. Prove postings from sales invoices to stock cards.
3. Compare quantity per OR and Sales Invoices
4. Prove the footings of the inventory list
5. Test pricing.
6. Prove extension.
7. Trace Count Sheet to Inventory List.
8. Trace Inventory List to Count Sheet.
9. Trace Inventory List to Stock Cards.
10. Trace Stock Cards to Inventory Lists.
11. Summarize errors in the error sheet.

Investments
1. Vouch investments.
2. Verify income against declarations.
3. Reconcile with general ledger investment balance.

Assignment 3
Deadline: September 30, 2018

PPE, Depreciation, and Accumulated Deprecation

1. Vouch the three groups of accounts
a. PPE
b. Depreciation
c. Accumulated Depreciation
2. Make independent computation of depreciation and accumulated depreciation, compare
with book balances
3. Prepare necessary adjusting entries.

Accounts Payable
1. Prove mathematical accuracy of the purchases books.
2. Trace postings of purchase book totals to general ledgers. (In the audit of cash, the
payments were already vouched).
3. Trace CV postings to AP subsidiary ledgers.
4. Trace purchase invoice postings to the AP subsidiary ledger.
 5. Prove mathematical accuracy of the AP subsidiary ledger
6. Make a schedule of AP December 31, 2011
7. Reconcile total of AP subsidiary ledger with the GL AP account.
8. Post subsequent payments on AP.

Notes Receivable/Payable
1. Examine promissory notes
2. Reconcile the general ledger balances
3. Accrue or defer interest income or interest expense

Stockholders’ Equity
1. Trace from Articles of Incorporation to the stock and transfer books the original
subscription.
2. Follow through postings in the general ledger CS and Subscribed CS and Subscription
Receivable to the Stock and Transfer Book.
3. Examine minutes of meetings for declarations of dividends.

Revenue and Expenses

1. Vouch
a. Organization cost
b. Salaries and Wages or Payroll
c. Taxes and Licenses
d. Advertising
e. Insurance

2. Analyze
a. Cost of Goods Sold
b. Sales

Assignment 4
Deadline: October 27, 2018

Prepare Audited Financial Statement

1. Prepare Working Balance Sheet
Accounts Per Client AJE Per Audit Per Audit
12.31.2011 12.31.2011 12.31.2011 12.31.2010
Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr.

2. Prepare Working Income Statement

Accounts Per Client AJE Per Audit Per Audit
12.31.2011 12.31.2011 12.31.2011 12.31.2010
Dr. Cr. Dr. Cr. Dr. Cr. Dr. Cr.
 3. Prepare:
a. Balance Sheet
b. Income Statement
c. Statement of Changes in Stockholders’ Equity
d. Cash Flow Statement
e. Notes to Financial Statement

Prepare Audit Report – Draft an appropriate Audit Report

Prepare Income Tax Return for 2011

Note: Audit Working Papers should include audit notes and adjusting journal entries on December
31, 2011 and Disposition of Audit Notes.

Final Revisions:
November 10, 2018
- Papers must be arranged accordingly with table of contents and page number

Submission of Final Output:

November 17, 2018