Below Are Five Audit Procedures, All of Which Are Tests

question 88

Essay

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:

Fungus

A kingdom of eukaryotic organisms that includes yeasts, molds, and mushrooms, which are distinct from plants, animals, and bacteria.

Helminth

Parasitic worms, including flukes, tapeworms, and roundworms, that can cause disease in humans.

Protozoan

A diverse group of single-celled eukaryotic organisms, many of which are parasitic.

Bacterium

A large domain of prokaryotic microorganisms, typically a few micrometers in length, that can exist as single cells or in clusters, and have various roles in the environment, medicine, and industry.