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Wally’s Billboard & Sign Supply Case 9.1 Auditing of Cash

Wally’s Billboard & Sign Supply Case 9.1 Auditing of Cash. Wally’s Billboard & Sign Supply was founded four years ago by Walter Johnson. The company specializes in providing locations for sign and billboard advertising and has recently begun to enter the sign design market. After working several years in the marketing department of a large corporation, Wally decided that there was a need in his area for a company specializing in signs and billboards. Drawing on his marketing experiences, he started his own company. The company is now preparing to expand its business and has enlisted the help of your firm, Taylor & Jones, LLP. Over the last two years your firm has provided auditing and assurance services to prepare the company to seek badly needed outside funding. Along with Bill Thompson, a senior auditor, you have been assigned to help with the annual audit. Your assignment is to conduct sustentative testing of the company’s cash balances. Bill has already conducted tests of controls for each of the company’s transactions cycles and has assessed control risk as relatively low in those cycles. He has also inquired of management regarding the existence of any restrictions imposed by external parties on the use of cash. Management assured him there are no such restrictions, but you plan to corroborate this response using bank confirmations. Wally’s Billboard & Sign Supply currently has three separate bank accounts. The first is a general account used mostly for business expenses and receipts. When payments are collected they are deposited, along with any cash sale receipts, in the general account. The second account is a payroll account. The third account is an interest bearing account that the company uses to maintain extra cash for future needs. For this assignment you will not be required to test intrabank transfers. Complete Audit Program (done, attached) then answer following questions:1.

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