Question Tag: Cash Management

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AAA – Nov 2023 – L3 – SC – Q6 – Internal Audit and Corporate Governance

Discusses control activities for Reliable Ltd and external auditor responsibilities in light of control gaps and bank requirements.

Question

Reliable Limited is into wholesale and retail supply and distribution of stationeries to companies and educational institutions. The company maintains business relationships with other enterprises that are owned by close friends and relatives. The books of account of the company were kept manually and in simple Excel. The company had only a staff member in the accounts department since it is a small business operation.

A review of the company’s operations shows that inventory of stationeries purchased was not properly valued due to incomplete recording of purchases made. Although bank statements are obtained, the balances on the bank statements were not reconciled with the cash book.

Cash from sales made was not banked intact, and expenses relating to cash takings from the till were not all recorded or properly monitored. Added to this, goods bought from related parties were sometimes overvalued as suppliers made frivolous claims which could not be disputed due to poor record keeping. The Managing Director and owner of the company has been sick for some time, and the wife concentrated more on her own business, leaving the operations of the company to a relation who is not well educated. Available evidence revealed that invoices and vouchers of the company were approved without management review, and the procedure or selection of suppliers was not transparent.

The company has just won a contract for the supply of stationeries in one of the states in the Federation, and it was found that there was inadequate cash flow to execute the contract. The manager of the company informed the Managing Director’s wife of the development, and it was agreed that a bank loan would be needed. On approaching the bank, updated financial statements of the company were requested to determine the financial health of the business and ability to repay the loan when due.

Your firm has been appointed as auditors of the company with a stipulated deadline to complete the audit so that the company could meet the bank’s conditions. The firm has conducted a preliminary review of the operations of the company, and some control gaps have been noted.

Required:

a. Discuss suitable control activities that will be required in the above scenario and how you will assess the degree of effectiveness of the internal control systems.
(10 Marks)

b. Identify and explain what the external auditors are expected to do during the course of the above audit.
(5 Marks)

Total: 15 Marks

Answer

Find Related Questions by Tags, levels, etc.

Tags: Bank Reconciliation, Cash Management, Control Gaps, Corporate Governance, External audit, Financial Statements, Internal Controls, Inventory Valuation, Loan Assessment, Related parties
Level: Level 3

Topic: Internal Audit and Corporate Governance
Series: NOV 2023

FR – Nov 2022 – L2 – Q2 – Statement of Cash Flows

Prepare a statement of cash flows using the direct method for Obudu Nigeria Limited based on the given financial statements.

Question

Financial statements and extract from the cashbook of Obudu Nigeria Limited for the year ended December 31, 2020 are summarised below:
Obudu Nigeria Limited Statement of profit or Loss for the year ended December 31, 2020

Obudu Nigeria Limited Statement of financial position as at December 31

Other Information
(i) The 8% loan notes have been partly redeemed. It is expected that the full redemption will be made in five years time.
(ii) A cash payment for insurance of N1million was omitted in the cash book and other records.
(iii) The investments are not easily realisable.
Required:
a. Prepare the statement of cash flows for the year ended December 31, 2020 using the direct method in accordance with IAS 7. (9 Marks)
b. Prepare a statement of reconciliation of the operating profit to cash flow from operations. (5 Marks)
c. Discuss the benefits of statement of cash flows information to users of financial statements.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Cash Flows, Cash Management, Direct Method, Financing Activities, IAS 7, Investing Activities, Operating Activities
Level: Level 2

Topic: Statement of Cash Flows (IAS 7)
Series: NOV 2022

PSAF – May 2021 – L2 – Q3a – Treasury Management in the Public Sector

Explain strategies to enhance cash management and factors affecting its effectiveness in public finance.

Question

Cash management implemented by the Budget Office of the Federation (BoF) was to ensure that the right amount of money is made available to fund government expenditure in a timely manner as well as meeting its obligations as they fall due.

Required:
Explain FIVE strategies to enhance cash management control and FIVE factors militating against effective cash management. (10 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Budget Office, Cash Management, Financial Control, Public Expenditure, Treasury Management
Level: Level 2

Topic: Treasury Management in the Public Sector
Series: MAY 2021

PSAF – Nov 2015 – L2 – Q3b – Treasury Management in the Public Sector

Describe five weaknesses in Nigeria's cash management practices.

Question

Discuss any FIVE weaknesses in the current system of cash management in Nigeria.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Budgetary Control, Cash Management, Government Revenue, Inter-Agency Collaboration, Oil Dependence, Treasury Monitoring
Level: Level 2

Topic: Treasury Management in the Public Sector
Series: NOV 2015

PSAF – Nov 2015 – L2 – Q3a – Treasury Management in the Public Sector

State four key objectives of cash planning and management.

Question

Cash management is one of the challenges of Treasuries all over the world.

a. Identify any FOUR objectives of cash planning and management.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Budget Execution, Cash Management, Financial Monitoring, Idle Cash, Procurement
Level: Level 2

Topic: Treasury Management in the Public Sector
Series: NOV 2015

FA – Nov 2022 – L1 – SB – Q4c – Recording Financial Transactions

This question asks for an explanation of how a petty cash book operates for Chief Emeka.

Question

Chief Emeka is considering setting up a petty cash book from which to pay small expenses. However, he is not sure of how a petty cash book operates.

Required:
Explain to Chief Emeka the operation of a petty cash book. (6 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Cash Management, Imprest System, Petty Cash Book, Small Expenses
Level: Level 1

Topic: Recording Financial Transactions
Series: NOV 2022

FA – Nov 2022 – L1 – SA – Q14 – Recording Financial Transaction

Identify the correct term for the fixed amount of money given to a petty cashier.

Question

The fixed amount of money given to a petty cashier at the beginning of a period is called
A. Float
B. Imprest
C. Petty cash
D. Cash received
E. Cash advance

Answer

Find Related Questions by Tags, levels, etc.

Tags: Cash Management, Financial Records, Petty Cash
Level: Level 1

Topic: Recording Financial Transactions
Series: NOV 2022

MI – Nov 2014 – L1 – SA – Q5 – Decision-making techniques

Working Capital, Cash Cycle, Inventory, Receivables, Cash Management

Question

The working capital cycle starts and ends with ONE of the following:

A. Cash and Payables
B. Inventory and Receivables
C. Work in Progress and Inventory
D. Cash and Inventory
E. Cash and Receivables

Answer

Find Related Questions by Tags, levels, etc.

Tags: Cash Cycle, Cash Management, Inventory, Receivables, Working Capital
Level: Level 1

Topic: Decision-making techniques
Series: NOV 2014

FA – May 2024 – L1 – SB – Q2a – Recording Financial Transactions (Including Source Documents, Books of Prime Entry, and Cash Books)

Examines internal control procedures over cash receipts in a business.

Question

Examines internal control procedures over cash receipts in a business.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Cash Management, Internal Control
Level: Level 1

FA – May 2024 – L1 – SA – Q16 – Bank Reconciliation

Identifies the primary purpose of performing bank reconciliations in accounting.

Question

The primary purpose of performing bank reconciliations in accounting is to:

A. Ensure that the balance in the cash at bank account and the balance shown in the bank statement are always the same
B. Identify and correct errors in accounting records related to cash transactions with the bank
C. Combine the cash book balance with the bank statement balance to get the total cash position
D. Reconcile the balances of other accounts in the general ledger with the bank statement
E. Verify the accuracy of non-cash transactions in the accounting records

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting Controls, Bank Reconciliation, Cash Management
Level: Level 1

Topic: Bank reconciliations
Series: MAY 2024

AAA – Nov 2023 – L3 – SC – Q6 – Internal Audit and Corporate Governance

Discusses control activities for Reliable Ltd and external auditor responsibilities in light of control gaps and bank requirements.

Question

Required:

a. Discuss suitable control activities that will be required in the above scenario and how you will assess the degree of effectiveness of the internal control systems.
(10 Marks)

b. Identify and explain what the external auditors are expected to do during the course of the above audit.
(5 Marks)

Total: 15 Marks

Answer

Find Related Questions by Tags, levels, etc.

Tags: Bank Reconciliation, Cash Management, Control Gaps, Corporate Governance, External audit, Financial Statements, Internal Controls, Inventory Valuation, Loan Assessment, Related parties
Level: Level 3

Topic: Internal Audit and Corporate Governance
Series: NOV 2023

FR – Nov 2022 – L2 – Q2 – Statement of Cash Flows

Prepare a statement of cash flows using the direct method for Obudu Nigeria Limited based on the given financial statements.

Question

Answer

Find Related Questions by Tags, levels, etc.

Tags: Cash Flows, Cash Management, Direct Method, Financing Activities, IAS 7, Investing Activities, Operating Activities
Level: Level 2

Topic: Statement of Cash Flows (IAS 7)
Series: NOV 2022

PSAF – May 2021 – L2 – Q3a – Treasury Management in the Public Sector

Explain strategies to enhance cash management and factors affecting its effectiveness in public finance.

Question

Required:
Explain FIVE strategies to enhance cash management control and FIVE factors militating against effective cash management. (10 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Budget Office, Cash Management, Financial Control, Public Expenditure, Treasury Management
Level: Level 2

Topic: Treasury Management in the Public Sector
Series: MAY 2021

PSAF – Nov 2015 – L2 – Q3b – Treasury Management in the Public Sector

Describe five weaknesses in Nigeria's cash management practices.

Question

Discuss any FIVE weaknesses in the current system of cash management in Nigeria.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Budgetary Control, Cash Management, Government Revenue, Inter-Agency Collaboration, Oil Dependence, Treasury Monitoring
Level: Level 2

Topic: Treasury Management in the Public Sector
Series: NOV 2015

PSAF – Nov 2015 – L2 – Q3a – Treasury Management in the Public Sector

State four key objectives of cash planning and management.

Question

Cash management is one of the challenges of Treasuries all over the world.

a. Identify any FOUR objectives of cash planning and management.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Budget Execution, Cash Management, Financial Monitoring, Idle Cash, Procurement
Level: Level 2

Topic: Treasury Management in the Public Sector
Series: NOV 2015

FA – Nov 2022 – L1 – SB – Q4c – Recording Financial Transactions

This question asks for an explanation of how a petty cash book operates for Chief Emeka.

Question

Chief Emeka is considering setting up a petty cash book from which to pay small expenses. However, he is not sure of how a petty cash book operates.

Required:
Explain to Chief Emeka the operation of a petty cash book. (6 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Cash Management, Imprest System, Petty Cash Book, Small Expenses
Level: Level 1

Topic: Recording Financial Transactions
Series: NOV 2022

FA – Nov 2022 – L1 – SA – Q14 – Recording Financial Transaction

Identify the correct term for the fixed amount of money given to a petty cashier.

Question

The fixed amount of money given to a petty cashier at the beginning of a period is called
A. Float
B. Imprest
C. Petty cash
D. Cash received
E. Cash advance

Answer

Find Related Questions by Tags, levels, etc.

Tags: Cash Management, Financial Records, Petty Cash
Level: Level 1

Topic: Recording Financial Transactions
Series: NOV 2022

MI – Nov 2014 – L1 – SA – Q5 – Decision-making techniques

Working Capital, Cash Cycle, Inventory, Receivables, Cash Management

Question

The working capital cycle starts and ends with ONE of the following:

A. Cash and Payables
B. Inventory and Receivables
C. Work in Progress and Inventory
D. Cash and Inventory
E. Cash and Receivables

Answer

Find Related Questions by Tags, levels, etc.

Tags: Cash Cycle, Cash Management, Inventory, Receivables, Working Capital
Level: Level 1

Topic: Decision-making techniques
Series: NOV 2014

FA – May 2024 – L1 – SB – Q2a – Recording Financial Transactions (Including Source Documents, Books of Prime Entry, and Cash Books)

Examines internal control procedures over cash receipts in a business.

Question

Examines internal control procedures over cash receipts in a business.

Answer

Find Related Questions by Tags, levels, etc.

Tags: Cash Management, Internal Control
Level: Level 1

FA – May 2024 – L1 – SA – Q16 – Bank Reconciliation

Identifies the primary purpose of performing bank reconciliations in accounting.

Question

The primary purpose of performing bank reconciliations in accounting is to:

Answer

Find Related Questions by Tags, levels, etc.

Tags: Accounting Controls, Bank Reconciliation, Cash Management
Level: Level 1

Topic: Bank reconciliations
Series: MAY 2024

Question Tag: Cash Management

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AAA – Nov 2023 – L3 – SC – Q6 – Internal Audit and Corporate Governance

Discusses control activities for Reliable Ltd and external auditor responsibilities in light of control gaps and bank requirements.

You're reporting an error for "AAA – Nov 2023 – L3 – SC – Q6 – Internal Audit and Corporate Governance"

FR – Nov 2022 – L2 – Q2 – Statement of Cash Flows

Prepare a statement of cash flows using the direct method for Obudu Nigeria Limited based on the given financial statements.

You're reporting an error for "FR – Nov 2022 – L2 – Q2 – Statement of Cash Flows"

PSAF – May 2021 – L2 – Q3a – Treasury Management in the Public Sector

Explain strategies to enhance cash management and factors affecting its effectiveness in public finance.

You're reporting an error for "PSAF – May 2021 – L2 – Q3a – Treasury Management in the Public Sector"

PSAF – Nov 2015 – L2 – Q3b – Treasury Management in the Public Sector

Describe five weaknesses in Nigeria's cash management practices.

You're reporting an error for "PSAF – Nov 2015 – L2 – Q3b – Treasury Management in the Public Sector"

PSAF – Nov 2015 – L2 – Q3a – Treasury Management in the Public Sector

State four key objectives of cash planning and management.

You're reporting an error for "PSAF – Nov 2015 – L2 – Q3a – Treasury Management in the Public Sector"

FA – Nov 2022 – L1 – SB – Q4c – Recording Financial Transactions

This question asks for an explanation of how a petty cash book operates for Chief Emeka.

You're reporting an error for "FA – Nov 2022 – L1 – SB – Q4c – Recording Financial Transactions"

FA – Nov 2022 – L1 – SA – Q14 – Recording Financial Transaction

Identify the correct term for the fixed amount of money given to a petty cashier.

You're reporting an error for "FA – Nov 2022 – L1 – SA – Q14 – Recording Financial Transaction"

MI – Nov 2014 – L1 – SA – Q5 – Decision-making techniques

Working Capital, Cash Cycle, Inventory, Receivables, Cash Management

You're reporting an error for "MI – Nov 2014 – L1 – SA – Q5 – Decision-making techniques"

FA – May 2024 – L1 – SB – Q2a – Recording Financial Transactions (Including Source Documents, Books of Prime Entry, and Cash Books)

Examines internal control procedures over cash receipts in a business.

You're reporting an error for "FA – May 2024 – L1 – SB – Q2a – Recording Financial Transactions (Including Source Documents, Books of Prime Entry, and Cash Books)"

FA – May 2024 – L1 – SA – Q16 – Bank Reconciliation

Identifies the primary purpose of performing bank reconciliations in accounting.

You're reporting an error for "FA – May 2024 – L1 – SA – Q16 – Bank Reconciliation"

AAA – Nov 2023 – L3 – SC – Q6 – Internal Audit and Corporate Governance

Discusses control activities for Reliable Ltd and external auditor responsibilities in light of control gaps and bank requirements.

You're reporting an error for "AAA – Nov 2023 – L3 – SC – Q6 – Internal Audit and Corporate Governance"

FR – Nov 2022 – L2 – Q2 – Statement of Cash Flows

Prepare a statement of cash flows using the direct method for Obudu Nigeria Limited based on the given financial statements.

You're reporting an error for "FR – Nov 2022 – L2 – Q2 – Statement of Cash Flows"

PSAF – May 2021 – L2 – Q3a – Treasury Management in the Public Sector

Explain strategies to enhance cash management and factors affecting its effectiveness in public finance.

You're reporting an error for "PSAF – May 2021 – L2 – Q3a – Treasury Management in the Public Sector"

PSAF – Nov 2015 – L2 – Q3b – Treasury Management in the Public Sector

Describe five weaknesses in Nigeria's cash management practices.

You're reporting an error for "PSAF – Nov 2015 – L2 – Q3b – Treasury Management in the Public Sector"

PSAF – Nov 2015 – L2 – Q3a – Treasury Management in the Public Sector

State four key objectives of cash planning and management.

You're reporting an error for "PSAF – Nov 2015 – L2 – Q3a – Treasury Management in the Public Sector"

FA – Nov 2022 – L1 – SB – Q4c – Recording Financial Transactions

This question asks for an explanation of how a petty cash book operates for Chief Emeka.

You're reporting an error for "FA – Nov 2022 – L1 – SB – Q4c – Recording Financial Transactions"

FA – Nov 2022 – L1 – SA – Q14 – Recording Financial Transaction

Identify the correct term for the fixed amount of money given to a petty cashier.

You're reporting an error for "FA – Nov 2022 – L1 – SA – Q14 – Recording Financial Transaction"

MI – Nov 2014 – L1 – SA – Q5 – Decision-making techniques

Working Capital, Cash Cycle, Inventory, Receivables, Cash Management

You're reporting an error for "MI – Nov 2014 – L1 – SA – Q5 – Decision-making techniques"

FA – May 2024 – L1 – SB – Q2a – Recording Financial Transactions (Including Source Documents, Books of Prime Entry, and Cash Books)

Examines internal control procedures over cash receipts in a business.

You're reporting an error for "FA – May 2024 – L1 – SB – Q2a – Recording Financial Transactions (Including Source Documents, Books of Prime Entry, and Cash Books)"

FA – May 2024 – L1 – SA – Q16 – Bank Reconciliation

Identifies the primary purpose of performing bank reconciliations in accounting.

You're reporting an error for "FA – May 2024 – L1 – SA – Q16 – Bank Reconciliation"

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