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”the company installed a new till system in all supermarkets. The new till system is
linked to the accounting system at head office and automatically posts transactions to the accounting system.Previously journals were made manually based on totals on till rolls.
The audit engagement partner has also said that she has is concerned that the new till system may not be reliable,
and that consequently not all sales have been recorded, resulting in an understatement of revenue. ”As an audit procedure the following is INVALID.
” Agree sales revenue from till receipts to the cashbook to determine the accuracy of till receipts. ”as agreeing revenue from till receipts to the cashbook is the
wrong way around – this test should begin with the cashbook in order to test for completeness.Mam I would like to know about the till system so that I can construst the directional testing accordingly… Unfortunately there hasnt been any mention of it so far anywhere…
“till system” is referring to a cash register https://www.mobiletransaction.org/cash-register-vs-pos-system
so if, an item is sold, first a till receipt is generated and then books are updated right? then would it be valid to test completeness by tracing a sample of receipts through to inclusion in sales day book?
and also my agreeing cashbook receipt to inclusion in revenue? will test completeness?
Yes – the till/register is the first point at which the sale is recorded/cash received – the two of course should correspond. So at the end of each day (or more frequently) there will be a “cashing up” of the till – confirming that the total amount of cash/cheques/credit card payments = the total of the sales as recorded on the till rolls. Each day’s total should be recorded as cash receipts and sales for the day.
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