For the following audit procedures that were taken from an audit program, indicate whether each procedure is:(1)
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For the following audit procedures that were taken from an audit program, indicate whether each procedure is:(1) A test of control.(2) A substantive test of transactions.(3) An analytical procedure.(4) A test of details of balances.
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Procedure Type Audit Procedure Foot the accounts payable trial balance and compare the total with the general ledger. Confirm accounts payable balances directly with vendors. Account for a sequence of cheques in the cash disbursements journal to determine whether any have been omitted. Examine vendors invoices to verify the ending balance in accounts payable. Compare the balance in payroll tax expense with previous years. The comparison takes the increase in payroll tax rates into account. Examine the internal auditor's initials on monthly bank reconciliations as an indica- tion of whether they have been reviewed. Examine vendors' invoices and other documentation in support of recorded transac- tions in the acquisitions journal. Multiply the commission rate by total sales and compare the result with commission expense. Examine vendors' invoices and other supporting documents to determine whether large amounts in the repair and maintenance account should be capitalized. Discuss the duties of the cash disbursements clerk with him or her and observe whether he or she has responsibility for handling cash or preparing the bank reconciliation. Inquire about the accounts payable supervisor's monthly review of a computer- generated exception report of receiving reports and purchase orders that have not been matched with a vendor invoice.
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Related Book For
Auditing The Art and Science of Assurance Engagements
ISBN: 978-0134613116
14th Canadian edition
Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Joanne C. Jones
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