Audit Program Design Part III for Apollo Shoes
Crystal Spencer
ACC/546
September 24, 2012 Deborah Fitzgerald Thomas

Sloan and Spencer Auditing Firm during phase III of Apollo Shoes audit plan, we will focus in two key cycles, which are the following: inventory and warehouse cycle and cash cycle. It is important to understand that are six types of transactions in the inventory and warehouse cycles which are: receive raw materials, store raw materials, process purchase order, and process of goods, store completed goods, and ship completed goods. In addition, it is important understand that cash is chiefly important and exceedingly vulnerable to fraudulent activity this is why an
Compare cash in account to prior years audited financial statement. Ensure that all investment are accounted for, and on other accounts are missing in the bank statement. Confirm if petty cash payments are accounted form and receivables are deducted when collection are received. Test of Controls and substantive test of cash cycle transactions * Cash in the banks on the bank reconciliation agrees with the general ledger, view the outstanding check listing and the deposits in transit of the bank reconciliation * Prove the bank reconciliation for additions and subtractions, which will included all reconciling item, and trace the book balance on the bank reconciliation in the general ledger balance. * Cash receipts and cash disbursement transactions are recorded in the proper period * Count the cash on hand on the last day of the year and subsequently trace to the deposits in transit and cash receipts journal. * Trace deposits to transit to subsequence period bank, and trace deposits in transit to subsequence period bank statements. * Cash disbursement: record the last check number used on the last day of the year and subsequently trace to the outstanding checks and the cash disbursements journal. * Trace outstanding checks to subsequent period bank statement * Compare classification with chart of accounts and