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Hi guys, would anyone be able to explain to me followings as simplistic way as possible, as I have zero accounting work experience and got my undergrad over a decade ago, so I am a little confuse even after reading the explanations.
1- For questions such as-> for detecting overstatement of sales; auditor should vouch transaction from accounting records to the source documents -> can anyone kindly explain to me the full logistics of such events as in the very basic of it all, and explain other related tests of details such as sales documents to accounting records; what do they exactly mean, which events supposed to come first n which events are interrelated.
2- For questions such as which of the following controls is not usually performed in the vouching payable department?-> Accounting for for unused pre-numbered purchases orders n receiving reports. I know there were 3 rights answers but I am having difficult time in understanding full logistics of it all. I know there are segregations of duties that need to be followed, but getting confused as to which transactions are to be done by which departments. I understand that employee who signs checks last should mail the disbursement checks n remittance advices but I am not fully confident that I understand what exactly disbursement checks n remittance advices n other tasks are, though I have an idea but having hard time picturing it together in my head.
Maybe I should taken FAR first to understand the cycle of accounting n such but here I am!! Any help would be appreciated, thank you all.