Ready to Go is a producer of fine deserts and pastries. Thecompany is has operations in the U.S. and Canada. The Companycurrently has 52 different product lines. The accountingdepartments consists of a controller and two accounting staff. Youobtained the following information following your inquiry with thecontroller:
The warehouse maintains a copy of each prenumbered receivingreport in sequential order.
For each delivery, a prenumbered receiving report is preparedand sent to head office.
Invoices are entered but not posted into the accounts payablesubledger at head office on receipt.
After the invoice is agreed to the recei
ing report, it is posted to the accounts payable subledger.
A master price list is maintained for each of the 52products.
Required
Prepare an audit program of at least three test ofcontrols to verify the related key controlobjective.
Ready to Go is a producer of fine deserts and pastries. Thecompany is has operations in the U.S. and Canada. The Companycurrently has 52 different product lines. The accountingdepartments consists of a controller and two accounting staff. Youobtained the following information following your inquiry with thecontroller:
The warehouse maintains a copy of each prenumbered receivingreport in sequential order.
For each delivery, a prenumbered receiving report is preparedand sent to head office.
Invoices are entered but not posted into the accounts payablesubledger at head office on receipt.
After the invoice is agreed to the recei
ing report, it is posted to the accounts payable subledger.
A master price list is maintained for each of the 52products.
Required
Prepare an audit program of at least three test ofcontrols to verify the related key controlobjective.
