Case Studies - Tests of controls and tests of balances in audit Essay

human face Studies - Tests of defends and tests of balances in audit program format - Essay Exampleg the test of controls for cash in the case of The Ourtown Independent domesticate District should have the following questions fareed by yes, no, or not applicable. If the answer is no, the next for any of the following questions pertaining to cash receipts for agency should lead us to conduct to a greater extent extensive test on balances since such negative answer or answers will denote a weakness of the internal control that would affect the materiality of misstatement in the accounts pertaining to the company under audit.The Ourtown Independent School Districts cash disbursements, answers to the following questions s will assist in assuring that any payments are properly approved, recorded, and supported by appropriate documentation as way of testing the presence of appropriate controls.Since internal control includes all the policies and procedures to safeguard the school di strict assets, an analysis of the diary entries should similarly be evaluated. Accounting realities may provide the special opportunity to make adjustments to accounting records. Although the general journal is used as basis to record non cash items, it is also as important as the other books of original entry namely the cash receipts and cash disbursements journals. Entries made could used to hide the trick committed on case hence the answers to the following questions are desirable for the test of controls for cash get out of good internal control for cash is the existence of trust fund system which requires the practice of governing and maintenance of petty cash. To ensure the same, the following questions could be used to evaluate whether controls are meant to provide for a timely recording of expenditures of cash in the accounting systemA good internal control for cash requires periodic bank account reconciliation, which is a primary tool for assuring the proper recording and accounting for all cash account activity. To attain the accomplishment of the same the following questions need