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:

Technical Assistance

Support provided, typically in the form of expertise or training, to help organizations, countries, or businesses improve their performance.

Isocost Line

A graphical representation in economics that shows all possible combinations of inputs that have the same total cost.

Fuel-Efficient Rate

A measure of how effectively a vehicle converts fuel into travel distance, often expressed in miles per gallon (mpg) or liters per 100 kilometers (l/100km).

Isocost Line

A graph line representing all combinations of inputs that can be purchased for the same total cost, assisting in the analysis of cost minimization.