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    Latihan Sesi 4 - Kelompok 3

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    michele hazel
    The document lists the names of 6 students in Kelompok 3 Accounting 6B and describes 7 misstatements that were included in the accounting records of Newcomb & Company. For each misstatement, it provides a recommended control that could have prevented the misstatement and a substantive audit procedure that could uncover it. The controls include internal verification, foreman approving time cards, not returning checks to the payroll clerk, and using pre-numbered payroll checks. The audit procedures include tracing labor distribution, observing employee time card usage, recomputing federal withholding, and reconciling payroll journal to bank statements.

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    Latihan Sesi 4 - Kelompok 3

    Uploaded by

    michele hazel
    51 views2 pages
    The document lists the names of 6 students in Kelompok 3 Accounting 6B and describes 7 misstatements that were included in the accounting records of Newcomb & Company. For each misstatement, it provides a recommended control that could have prevented the misstatement and a substantive audit procedure that could uncover it. The controls include internal verification, foreman approving time cards, not returning checks to the payroll clerk, and using pre-numbered payroll checks. The audit procedures include tracing labor distribution, observing employee time card usage, recomputing federal withholding, and reconciling payroll journal to bank statements.

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    The document lists the names of 6 students in Kelompok 3 Accounting 6B and describes 7 misstatements that were included in the accounting records of Newcomb & Company. For each misstatement, it provides a recommended control that could have prevented the misstatement and a substantive audit procedure that could uncover it. The controls include internal verification, foreman approving time cards, not returning checks to the payroll clerk, and using pre-numbered payroll checks. The audit procedures include tracing labor distribution, observing employee time card usage, recomputing federal withholding, and reconciling payroll journal to bank statements.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    51 views2 pages

    Latihan Sesi 4 - Kelompok 3

    Uploaded by

    michele hazel
    The document lists the names of 6 students in Kelompok 3 Accounting 6B and describes 7 misstatements that were included in the accounting records of Newcomb & Company. For each misstatement, it provides a recommended control that could have prevented the misstatement and a substantive audit procedure that could uncover it. The controls include internal verification, foreman approving time cards, not returning checks to the payroll clerk, and using pre-numbered payroll checks. The audit procedures include tracing labor distribution, observing employee time card usage, recomputing federal withholding, and reconciling payroll journal to bank statements.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 2

    Kelompok 3 Accounting 6B :

    - Cherrie Donella 13202010048


    - Gabriela Sheryl Ongkie 13202010016
    - Juniwati Waruhu 13202010040
    - Lelapika Sitanggang 13202010042
    - Nur Ainun Hasibuan 13202010044
    - Stefany Sugianto 13202010050

    19-18 (OBJECTIVES 19-2, 19-3) The following misstatements are included in the accounting records
    of Newcomb & Company:
    a. For each misstatement, state a control that should have prevented it from occurring on a
    continuing basis.
    b. For each misstatement, state a substantive audit procedure that could uncover it.

    1. Direct labor was unintentionally charged to job 620 instead of job 602 by the payroll clerk when he
    key-entered the labor distribution sheets. Job 602 was completed and the costs were expensed in
    the current year, whereas job 620 was included in work-in-process.
    a. Recommended control - internal verification
    b. Substantive audit procedure - trace total labor distribution to job input form

    2. Joe Block and Frank Demery take turns “punching in” for each other every few days. The absent
    employee comes in at noon and tells his foreman that he had car trouble or some other problem.
    The foreman does not know that the employee is getting paid for the time.
    a. Recommended control - foreman approves time card
    b. Substantive audit procedure - observe employees using time card

    3. The foreman submits a fraudulent time card for a former employee each week and delivers the
    related payroll check to the employee’s house on the way home from work. They split the amount of
    the paycheck.
    a. Recommended control - foreman approves time card
    b. Substantive audit procedure - observe employees using time card

    4. Employees often overlook recording their hours worked on job-cost tickets as required by the
    system. Many of the client’s contracts are on a cost-plus basis.
    a. Recommended control - pay employees only for time charged to job
    b. Substantive audit procedure - compare total hours worked from payroll journal to total hours
    worked on job ticket

    5. The payroll clerk prepares a check to the same nonexistent person every week when he enters
    payroll transactions in the computer system, which also records the amount in the payroll journal. He
    submits it along with all other payroll checks for signature. When the checks are returned to him for
    distribution, he takes the check and deposits it in a special bank account bearing that person’s name.
    a. Recommended control - don't return checks to payroll clerk
    b. Substantive audit procedure - observe payroll distribution & require ID
    6. In withholding payroll taxes from employees, the computer operator deducts $3.50 extra federal
    income taxes from several employees each week and credits the amount to his own employee
    earnings record.
    a. Recommended control - internal verification
    b. Substantive audit procedure - recompute federal withholding & trace to records

    7. The payroll clerk manually prepares payroll checks but often forgets to record one or two checks in
    the computer-prepared payroll journal.
    a. Recommended control - use pre-numbered payroll checks & impress bank accts.
    b. Substantive audit procedure - reconcile disbursements in payroll journal to disbursements in
    bank statements

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