Below Are Five Audit Procedures, All of Which Are Tests

question 93

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) ________

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Definitions:

Retailer Branding

The practice of building a distinct identity and image for a retail store or chain, differentiating it from competitors and appealing to a target consumer market.

Multiproduct Branding

is a strategy where a single brand name is used for the sale of two or more related products.

Private Branding

A marketing strategy where products are produced by one company but are sold under another company's brand name.

Mixed Branding

A marketing strategy where a company markets products under its own name and that of a reseller because the segment attracted to the reseller is different from its own market.