ACCT 444 Week 2 Homework

Specific Transaction-Related Audit Objective
1. Recorded cash disbursement transactions are for the amount of goods or services received
and are correctly recorded.
2. Cash disbursement transactions are properly included in the accounts payable master file
and are correctly summarized.
3. Recorded cash disbursements are for goods and services actually received.
4. Cash disbursement transactions are properly classified.
5. Existing cash disbursement transactions are recorded.
6. Cash disbursement transactions are recorded on the correct dates.
Required
1. Explain the differences among management assertions about classes of transactions
and events, general transaction-related audit objectives, and specific transactionrelated
audit objectives and their relationships to each other.
1. For each specific transaction-related audit objective, identify the appropriate
management assertion.
2. For each specific transaction-related audit objective, identify the appropriate
general transaction-related audit objective.
Chapter 11
11-30 (Objective 11-1) The following are activities that occurred at Franklin Manufacturing, a
nonpublic company.
1. Franklin’s accountant did not record checks written in the last few days of the year until
the next accounting period to avoid a negative cash balance in the financial statements.
2. Franklin’s controller prepared and mailed a check to a vendor for a carload of material
that was not received. The vendor’s chief accountant, who is a friend of Franklin’s
controller, mailed a vendor’s invoice to Franklin, and the controller prepared a receiving
report. The vendor’s chief accountant deposited the check in an account he had set up
with a name almost identical to the vendor’s.