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Audit Internal Controls Questions

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John Harris, CPA, has been engaged to audit the financial statements of the Spartan Drug Store, Inc. Spartan is a medium-sized retail outlet that sells a wide variety of customer goods. All sales are for cash or check. Cashiers utilize cash registers to process theses transactions. There are no receipts by mail and there are no credit card or charge sales.

Construct the "Processing Cash Collections" segment of the internal control questionnaire on "Cash Receipts" to be used in the evaluation of internal control over the Spartan Drug Store, Inc. Each question should elicit either a yes or a no response. Do not discuss the controls over cash sales.

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Solution Summary

The expert examines an audit for internal control questions.

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I hope 10 questions will work based on 2 per credit.

1. Does Spartan Drug Store policy allow customers with a valid store-provided ID to write checks for anything besides merchandise sales?

2. Are customers who pay be check allowed to include an additional nominal cash amount in addition to ...

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