Exam 8: Acquisition and Expenditure Cycle

Which of the following procedures would an auditor most likely perform in searching for unrecorded liabilities?

Which of the following would not typically be a specific relevant assertion about fixed asset accounts?

Auditors can compare the ________________________________ file to the _________________________________ to determine whether the company has material unrecorded liabilities on the financial statement date. Reference: Question also found in study guide

A _____________________________ is a cover sheet containing all supporting documentation for an acquisition. Reference: Question also found in study guide

An auditor traced a sample of purchase orders and the related receiving reports to the purchases journal.The purpose of this substantive audit procedure most likely was to

The internal control questionnaire for purchases and accounts payable includes the following questions.Next to each of the questions,indicate the letter of the related transaction assertion. A.Occurrence B.Completeness C.Accuracy D.Classification E.Cutoff ----- $\quad$ 1. Are vendors' monthly statements reconciled with individual accounts payable accounts? ----- $\quad$ 2. Are all purchases made only on the basis of approved purchase requisitions? ----- $\quad$ 3 Are vendors' invoices listed immediately upon receipt? ----- $\quad$ 4. Are vendors' invoices matched against purchase orders and receiving reports before a liability is recorded? ----- $\quad$ 5. Is the accounts payable customer ledger balanced periodically with the general ledger control account? ----- $\quad$ 6. Does the accounting manual give instructions to date purchase entries on the date of receipt of goods? ----- $\quad$ 7. Are shipping documents authorized and prepared for goods returned to vendors? ----- $\quad$ 8. Is the accounts payable department notified of goods returned to vendors?

___________________________________ and ___________________________________ can cause "unmatched" invoices and related "unmatched" receiving reports to be unnoticed. Reference: Question also found in study guide

In a test of controls,auditors may trace receiving reports to vouchers recorded in the voucher register.This is a test for

Which of the following expense accounts would not normally be tested by listing all debits and examining any significant items?

Cutoff tests designed to detect purchases made before the end of the year that have been recorded in the subsequent year most likely would provide assurance about management's assertion of

Which of the following would not be included in the supporting documents for a voucher?

The purpose of segregating the duties of hiring personnel and distributing payroll checks is to separate the

When auditing liabilities account balances,auditors are most concerned with management' assertion about

An auditor is planning the testing of the accounts payable balance.The auditor's main concerns should be

If a person is absent from the company due to illness or vacation,their paycheck should be returned to the payroll department.

Specific balance assertions typical of accounts payable would not include

Changes to the payroll master file should be approved by human resources department.

Which of the following procedures would an auditor most likely perform in searching for unrecorded payables?

A client's purchasing system ends with the recording of a liability and its eventual payment.Which of the following best describes auditors' primary concern with respect to liabilities resulting from the purchasing system?

An auditor vouched data for a sample of employees in a payroll register to approved clock card data to provide assurance that