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. Audit Objectives: A. Occurrence B. Completeness C. Accuracy D. Posting and Summarization E. Classification F. Timing Management Assertions: V. Occurrence W. Completeness X. Accuracy Y. Classification Z. Cutoff Audit Procedures 1. Foot the purchases journal and trace the totals to the related general ledger accounts. ______ 2. Recompute the cash discounts taken by the client. _ _______ 3. Compare dates on cancelled checks with the bank cancellation date. _ ________ 4. Trace from a sample of cancelled checks to the cash disbursements journal. _ ________ 5. Examine supporting documentation for a sample of transactions for authorize payee and amount and to determine services or goods were received. _ ________

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter5: Professional Auditing Standards And The Audit Opinion Formulation Process

Section: Chapter Questions

Problem 11CYBK

See similar textbooks

Related questions

Concept explainers

Question

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.

Audit Objectives:

A. Occurrence

B. Completeness

C. Accuracy

D. Posting and Summarization

E. Classification

F. Timing

Management Assertions:

V. Occurrence

W. Completeness

X. Accuracy

Y. Classification

Z. Cutoff

Audit Procedures

1. Foot the purchases journal and trace the totals to the related general ledger accounts. __________________ ______________________

2. Recompute the cash discounts taken by the client. _____________________ _________________________

3. Compare dates on cancelled checks with the bank cancellation date. _________________ __________________________

4. Trace from a sample of cancelled checks to the cash disbursements journal. ___________________ ____________________

5. Examine supporting documentation for a sample of transactions for authorize payee and amount and to determine services or goods were received. _______ __________

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Audit procedures for items of Financial Statement

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions