Vincent Roy Rivera Acctng.

13

BSA-4

Instructor: Maam Heidi Ivy F. Fabelico

Final Exam

I.
1. T

2. T

3. F

4. F

5. T

6. F

7. T

8. F

9. F

10. T

II.
1. Bank Reconciliation

2. Revenue Recognition

3. Notes Receivable

4. Gross Profit Method

5. Retail Method

6. Financial Instruments

7. Investment in Associates

8. Inventory

9. Single-entry bookkeeping

10. Cash Basis Accounting

cont.

case problem #1

a. weakness : The duties in the mailroom are insufficiently divided.

Audit Procedures: Expand client confirmations, pick a range of regular transactions and
monitor reimbursement allowances for accounts receivable.

b. Weakness: It is evident that remittance advise is not prepared.

Audit Procedures: Expand client confirmations, pick a range of regular transactions and monitor
reimbursement allowances for accounts receivable.

c. Weakness: Back up evidence is not cancelled.

Audit Procedures: Look for double payments. Referring Government Audit Standards may be of
assistance.

d. Weakness: Customer complaints are not divided appropriately among the staff.

Audit Procedures: Extending analysis of recent collections and tracking of prior uncollected
statements through direct communication with the established consumers and/or addressing
collectability with management.

e. Weakness: Bank reconciliation is not prepared on a regular basis and not handled
independently by a person.

Audit Procedures: Prepare a reconciliation of the end of the year using the customer financial
statements and a bank cutoff statement. Get confirmations from various sources .

case Problem #2

1. D

2. C

3. C

4. B

5. A

6. B

7. B