A sequence check is an analysis that is conducted to evaluate checks that contain missing numbers. Every check has a preprinted number that is used to identify it. The preprinted numbers are assigned to checks in an ascending or descending order. Therefore, in a case where the checks are written out of order raises anomalies concerns and accountants need to conduct a sequence check to find the root-cause missing numbers.
Sequence check main aim is to determine these gaps in checks number and the possible cause. The analysis also identifies the sequence when it comes to the gaps and defines the kind of transactions that are contributing most to the checks that have the missing numbers. This analysis helps an accountant to know whether the missing numbers in the checks was dues to fraud, error or just a coincidence. Sometimes checks can be out of sequence dues to a check that was written, but void or sometimes the check is still outstanding. Other times the person that was handling the checks might have keyed in the wrong check number, or maybe someone is trying to manipulate the company’s financial data. The sequence checks will identify these anomalies.
Delegate your assignment to our experts and they will do the rest.
Duplicate testing is an analysis that is used to check the number of checks that are counted twice. A check can be counted twice in situations where there is a duplicated transactions or invoices that may be recorded twice on the same day and indicated the same amount or to the same customer or client (Richardson et al., 2017). The accounting system can be tested to produce all duplicated checks and then diagnostic analysis conducted to understand the reason for the duplication. Sometimes there are errors in the accounting system that lead to checks being counted twice. Furthermore, checks can be counted twice by an employee who is trying to cover for some lost funds that are not accounted for.
Reference
Richardson, V. J., Teeter, R. A., & Terrell, K. L. (2017). Data analytics for accounting . New York, NY: McGraw-Hill.
