Answer:
a. Compare the details of cash receipts with journal entries.
b. Prepare a bank transfer schedule.
c. Confirm the terms of borrowing with the lenders agreement.
d. Send request to confirm the entity's account receivable balance.
e. Inspect payroll data of employees and cross check with the transaction recorded.
f. Obtain cut off bank statement to reconcile the transaction.
g. Examine the selected repair order and physically examine the equipment whether repair work is don or not.
h. Examine the supporting documents for the invoice such as purchase order, goods received note and Purchase requisitions.
i. Inspect the payroll endorsements for similar handwriting.
Explanation:
Audit is mandatory for all the companies. The verified financial statements are considered as reliable because they are rechecked by the auditors and if any error or fraud is found it is immediately corrected and rectified. Audit is a critical process which involves objectivity and integrity of a person. The auditors must be independent and they should not have any familiarity with the business employees or owners.
Network Systems............................................................................
Answer:
Bad debt expense for 2020 is - $ 2,234
Explanation:
Adjustment to the Allowance for Doubtful Debts (Increase or Decrease) are recorded in the Income Statement as part of Bad Debts Expenses as follows;
<em>Increase in Allowance for Doubtful debts = Increases the Bad Debts Expense</em>
<em>Decrease in Allowance for Doubtful debts = Decreases the Bad Debts Expense</em>
During the Period Allowances for Doubtful Debts are calculated as :
Allowances for Doubtful Debts = $53,600 × 6%
= $ 3,216
Bad Debt Expense = $ 3,216-$5,450
= - $ 2,234
The best evidence is the soil evidence they collected from the archeological digs.
from that in particular...<span>The presence of fossils of different ages</span>
