Audit Preparation Procedure

Brandt Denniston

Description

Springfield Historical Society, Inc. Audit Preparation Procedure Audit Committee:  Gene Venable  Elizabeth Lundberg  Leigh Callaway 2009 Audit, February 5, 2010 1 Springfield Historical Society, Inc. Audit Preparation Procedure Reconciliation Summary Tie Outs Cash Account Bank Statements• Reconciled • Ties to Rec Sum Rpt• Ties to Rec Sum Rpt • O/B & E/B• O/B & E/B• Receipts• Deposits , Checks , Debits & Interest• Transfers : Ck'ng & CDRec SumO/B +- E/BReceipts Report Disbursement Report• Ties to Rec Sum Rpt • Ties to Rec Sum• Categorized • Categorized• Classifcation 1, maybe 2 • Classification 1 Verify System Reports against Transaction Detail in Folders Foulder DetailReceipts & Disbursements ReportsCategory & Dlassification 2 Springfield Historical Society, Inc. Audit Preparation Procedure Audit Preparation Goals: 1. Assure that documentation is properly prepared and organized for conducting the eight audit review steps. 2. Prepare the audit review deliverables. Audit Preparation Steps: Start/End Point 1. Produce prior year audit letter with attached financial reports. Note ending balances for each account: Cash, Checking and CD’s. 2. Produce this year’s Annual Report with attached financial reports. Note closing balances for each account: Cash, Checking and CD’s. Audit Step 1: Prepare Reconciliation Summary Report Cash Account 1. Open Excel file of Reconciliation Summary (RecSum) Report of prior ...

Informations

• Publié par: Unfae
• Nombre de lectures: 13
• Langue: English

Extrait

Springfield Historical Society, Inc. Audit Preparation Procedure Audit Committee: Gene Venable Elizabeth Lundberg Leigh Callaway 2009 Audit, February 5, 2010

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Springfield Historical Society, Inc. Audit Preparation Procedure Reconciliation Summary Tie Outs

Cash Account •Ties to Rec Sum Rpt •O/B & E/B •Receipts •Transfers : Ck'ng & CD

Receipts Report •Ties to Rec Sum Rpt •Categorized •maybe 2Classifcation 1,

Bank Statements •Reconciled •Ties to Rec Sum Rpt •O/B & E/B •Deposits , Checks , Debits & Interest

Rec Sum O/B +- E/B

Disbursement Report •Ties to Rec Sum •Categorized •Classification 1

Verify System Reports against Transaction Detail in Folders

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Receipts & Disbursements Reports

Foulder Detail

Category & Dlassification

Springfield Historical Society, Inc. Audit Preparation Procedure Audit Preparation Goals: 1. Assurethat documentation is properly prepared and organized for conducting the eight audit review steps. 2. Preparethe audit review deliverables.

Audit Preparation Steps:

Start/End Point 1. Produceprior year audit letter with attached financial reports. Note ending balances for each account: Cash, Checking and CD’s. 2.Produce this year’s Annual Report with attached financial reports. Note closing balances for each account: Cash, Checking and CD’s. Audit Step 1: Prepare Reconciliation Summary Report Cash Account 1. OpenExcel file of Reconciliation Summary (RecSum) Report of prior year and save it for current year. Change the year in the header and in the account labels. 2. EnterOpening balance in RecSum. It can be taken from the ending balance; but it should agree with the prior year audit report. 3. PrintMS Money report: Monthly income and expense Cash and mark it 1b. 4.Enter data from the Money report into the “Rec” and “Trans Ck” columns. 5. Checkthe column totals against the report and the closing balance against the current year financial reports. Checking Account 1. EnterOpening balance in RecSum. It can be taken from the ending balance; but it should agree with the prior year audit report. 2. PrintMS Money report: Monthly income and exp Checking and mark it 1b. 3.Enter data from the Money report into the “Dep”, Ck/Deb” and “Int” columnsof RecSum. 4. Checkthe column totals against the report and the closing balance against the current year financial reports. Certificate of Deposit Accounts 1. EnterOpening balances in RecSum. Each one can be taken from the ending balances; but it should agree with the prior year audit report and with the January bank statement opening balance. 2. PrintMS Money report: Monthly income and exp CD XXX for each CD account and mark them 1b. 3.Enter data from the Money report into the “Dep”, Ck/Deb” and “Int” columnsof RecSum. 4. Checkthe column totals against the report and the closing balance against the current year financial reports. 3

Springfield Historical Society, Inc. Audit Preparation Procedure Totals and Change Amounts 1. Thetotals and change amounts at the bottom of RecSum should agree with the current year end financial report and the sum of ending balances in the December bank statement. 2. PrintRecSum and mark it 1a.

Reconciliation 1. Printreport“Acct Transactions”–Checking and mark it 1c. 2.Print report “Acct Transactions –CD 860” and mark it 1c. 3.Print report “Acct Transactions –CD 990” and mark it 1c.

Assemble Step 1 Reports 1. Markthe report names with a highlighter pen. 2. Usinga binder clip fasten the reports labeled 1a, 1b and 1c together in that order.

Audit Step 2: Prepare for Cash Receipts Review

Print Reports: 1. RecSumreport and mark it with the number 2. 2. Receiptsby category- Cash and mark it with the number 2. 3. Transfersin by category- Checking and mark it with the number 2. 4. InterestIncome- Checking and mark it with the number 2. 5. Transfersby Acct- CD and mark it with the number 2. 6. InterestIncome _ CD and mark it with the number 2.

Assemble Step 2 Reports and Documents 1. Markreport titles with a highlighter. 2. Usinga binder clip fasten the reports labeled 2 in the order above together with the Receipts and Dues Forms folders.

Audit Step 3: Prepare for the Cash Disbursements Review

Print Reports: 1. TransfersOut by category- Cash 2. Disbursementsby category- Checking 3. Transfersby Acct- CD

Assemble Step 3 Reports and Documents 1. Markreport titles with a highlighter. 2. Usinga binder clip fasten the reports labeled 3 in the order above together with the Bills Paid folder.

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