$13-27($OBJECTIVES $13-1,13-4,13-5)$ The following are independent internal controls commonly found in the acquisition and payment cycle. Each control is to be considered independently.

$1.$Before a check is prepared to pay for acquisitions by the accounts payable department, the related purchase order and receiving report are attached to the vendor$$s invoice being paid. A clerk compares the quantity on the invoice with the receiving report and purchase order, compares the price with the purchase order, recomputes the extensions, re$-$adds the total, and examines the account number indicated on the invoice to determine whether it is correctly classified. The clerk indicates performance of these procedures by initialing the invoice.

$2.$Before a check is approved by the treasurer for issuance, she examines the supporting documentation accompanying the check. At that time, she initials each vendor$$s invoice to indicate her approval.

$3.$After the controller signs the checks, their assistant writes the check number and the date the check was issued on the supporting documents to prevent their reuse.

$4.$At month end, an accounting clerk accounts for all prenumbered receiving reports $($documents evidencing the receipt of goods$)$ issued during the month and traces each one to the related vendor$$s invoice and acquisitions journal entry. The clerk$$s tests do not include testing the quantity or description of the merchandise received.

$5.$The cash disbursements clerk is prohibited from handling cash. The bank account is reconciled by another person even though the clerk has sufficient expertise and time to do it$.$

Required

a$.$For each of the internal controls, state the transaction$-$related audit objective$($s$)$ the control is meant to fulfill.

b$.$For each control, list one test of control the auditor could perform to test the effectiveness of the control.

c$.$For each control, list one substantive test the auditor could perform to determine whether financial misstatements are actually taking place.