Bert Finney, CPA, was engaged to conduct an audit of the financial statements of Clayton...
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Accounting
Bert Finney, CPA, was engaged to conduct an audit of the financial statements of Clayton Realty Corporation for the month ending January 31, 2015. Exammining decumentation of the monthly rent reconciliation is and improtant part of the audit engagement.
The following rent reconciliation was prepared by the contoller of Clayton Realty Corporation and was presented to Finney, who sucjected it to various audit procedures:
Clayton Realty Corporation
Rent Reconciliation
For the Month Ended January 31, 2015
Gross apartment rents (Schedule A) $1,600,800
Less vacancies (Schedule B) 20,500
Net apartment rentals 1,580,300
Less unpaid January rents (Schedule C) 7,800
Total 1,572,500
Add prepaid rent collected (Apartment 116) 500
Total cash collected 1,573,000
Schedules A, B, and C are available to Finney but are not presented here. Finney evaluated and tested internal controls and found that they could be relied on to produce reliable accounting information. Cash receipts from rental operations are deposited in a special bank account.
What sustantive audit procedures should Finnehy use during the audit to obtain evidence of each of the dollar amounts marked by the dagger tick mark?
This is and audit question.
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