Session 22 - Study Guide - management

letter
This assesses your readiness to undergo the discipline of auditing cash - cash count
* Required

Look through your working papers during the year. Identify all the items that you have
identified as needing the attention of management. These are supposed to have been
identified for by the tickmar LTR which means that these items are for the information
of management through which you will give them the management letter
have read and understood the mechanics for preparing the management letter

2 a. Use several yellow sheets for the preparation of the management letter
b. Use the usual format of a letter
a. Heading
b. Date
c. Address
d. Salutation
e. The body which will contain your findings, the proof and the suggestion.
f. Complementary close
g. Signature
c. For each of the following, prepare
a. A statement about the weakness found
b. Proof that the weakness exist
c. Suggestion to correct the weakness
d. No maximum amount for individual disbursements from petty cash
fund is established by the company. Prepare the statement proof and
suggestion.
e. Cashed from collections by an employee; check endorsed in blank.
Prepare the statement proof and suggestion
f. Review of payroll summaries from start of the month to the end
showed that no deductions are sometimes deferred upon instructions of
 the office manager who concedes to officers or employees’ requests for
deferment. Prepare the statement proof and suggestion.
g. Computation of withholding taxes checked during interim work.
Amount of tax withheld not in accordance with semi-monthly withholding
table. Prepare the statement proof and suggestion.
h. The entries are not made on a timely basis. Prepare the statement
proof and suggestion.
i. Purchases commitments were not recorded in any form. Prepare the
statement proof and suggestion.
j. There is no control to ensure that all the purchases are reviewed and
authorized by a responsible official. Prepare the statement proof and
suggestion.
k. Identification of customers is not properly recorded. Prepare the
statement proof and suggestion.
l. The inventory custodian or person who have access to inventories
also prepare or check the shipping record. (e.g. delivery receipts)
Prepare the statement proof and suggestion. *
2 points

have

you can add what you have in the prior working papers the weaknesses identified for
in this study guide (see below) *
did the procedures indicated in the study guide