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:

Compacting Database

The process of restructuring a database to recover space from deleted records and to improve performance by reducing file size.

Reducing File Size

The process of decreasing the amount of data stored in a file to reduce its disk space usage, often done through compression techniques.

Repairing

The process of fixing or restoring something that is broken or damaged.

Counterattacking

Responding to an attack or criticism with aggression or defense, often aiming to neutralize or defeat the opposition.