Accounts Payable
This item typically begins the purchase cycle
What is a purchase requisition?
This is the account an invoice is recorded to after the AP system has been locked/closed.
Accrued liabilities
Retained earnings is a sum of a company’s earnings from prior periods after deducting what?
Dividends paid to the company’s shareholders
This is the date the leased asset becomes available for use.
What is the lease commencement date?
This is the main driver for all analytical procedures.
What are changes in revenues.
This is the directional risk regarding AP.
What is understatement?
This is the calculation representing the allocation of payroll costs for the final pay period between the current year and the subsequent year.
These PPC documents provide the listing of Transaction Classes and internal controls that are generally will be applicable to the internal control walkthrough area you are working on.
What are the control activity forms?
What is the risk free rate?
This is a required component of analytical procedures.
These are the 3 documents the AP department should use to match and record AP for inventory purchased.
What are the PO, receiving report, and invoice?
Accrued warranties and return allowances are an example of what?
Note: Be more specific than "Accrued Liability"This is the difference between a process and an internal control.
Processes are the actions performed by accounting personnel. Controls are the actions that ensure safety and accuracy.
In addition to the weighted-average discount rate, what other weighted-average should be disclosed?
Weighted-average remaining lease terms
Is it called SUL or UL Search
UL Search
An unpaid invoice for services received within the period being audited that is found on the AP aging.
What is "properly included"?
Cash received from customers for future services to be provided are generally recorded in this account.
What is "unearned revenue"?
The key control for this prompt is what?
"All hourly employees add their time daily into the time keeping system online. At the end of the pay period, each employee’s supervisor or manger will review the timecards for reasonableness and proper coding and approve the timesheet."
Timecards are approved by the employee’s supervisor or manager.
Finance leases
What report do we utilize to set industry expectations?
FirstResearch
The Search for Unrecorded Liabilities Search provides primarily tests these two assertions.
What are Completeness and Cutoff.
In layman's terms, "Determine the basis and method of accrual" translates to what?
Is this in accordance with GAAP?
How do you roll forward retained earnings?
Compare the beginning retained earnings in the trial balance to the ending retained earnings to the trial balance.
In addition to the lease liability, operating leases will now show this balance sheet item?
ROU asset
What are the three items we want stated on every major workpaper?
Purpose, procedures, conclusion