Below Are Five Audit Procedures,all of Which Are Tests of Transactions

question 105

Short Answer

Below are five audit procedures,all of which are tests of transactions associated with the audit of the acquisition and payment cycle.Also below are the six general transaction-related audit objectives and the five management assertions.For each audit procedure,indicate (1)its audit objective,and (2)the management assertion being tested.

1.Foot the purchases journal and trace the totals to the related general ledger accounts.
(1)________
(2)________
2.Recompute the cash discounts taken by the client.
(1)________
(2)________
3.Compare dates on cancelled checks with the bank cancellation date.
(1)________
(2)________
4.Trace from a sample of cancelled checks to the cash disbursements journal.
(1)________
(2)________
5.Examine supporting documentation for a sample of transactions for authorized payee and amount and to determine services or goods were received.
(1)________
(2)________

Recognize the rights of pregnant employees under Title VII and related laws regarding paid time off and workplace discrimination.

Understand the legalities involved in employment testing for psychological traits and discrimination issues.

Identify the federal agencies responsible for immigration worksite enforcement.

Comprehend the implications of sexual harassment in the workplace, including quid pro quo and hostile work environment harassment.

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Definitions:

Demand

The amount of a product or service that buyers are ready and capable of buying at different price levels over a specified time frame.

Increase

A situation where there is a growth or rise in figures, amounts, or indicators in an economic context.

Demand Curve

A graphical representation that shows the relationship between the price of a good and the quantity demanded by consumers.

Demand

The quantity of a good or service that consumers are willing and able to purchase at various prices during a given period.