An important control in the acquisition and expenditure process is the accounts payable clerks comparison of the

Question:

An important control in the acquisition and expenditure process is the clerk’s comparison of the vendor invoices with the purchase orders and the receiving reports for dates, quantities, prices, and terms.
a. Describe the misstatement in the that could occur if this control is not present.
b. Explain how you would design a substantive test to evaluate the potential misstatement in the if the control is missing.
c. Describe how you could test the internal control.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...