Answer the following questions by checking "yes" or $"$no$"$ and writing "remarks" using the flowchart below.

Control Objectives and Questions

$(1)$ Are purchases transactions supported by approved

purchase orders?

$(2)$ Are documents cancelled to prevent re$-$use?

$(3)$ Are receiving reports prenumbered and properly

accounted for?

$(4)$ Are receiving reports controlled in a manner that helps

assure that all goods received are recorded?

$(5)$ Is there internal verification of the calculations, prices,

and quantities on vendors' invoices?

$(6)$ Does someone independent of the recording of

purchases function verify that the proper accounts have

been debited and credited for purchases transactions?

$(7)$ Is there an independent comparison of dates on

receiving reports to dates recorded in the voucher

register?

$(8)$ Is there a policy requiring recording of purchases on a

daily basis as close to time of receipt of goods as

possible?

$(9)$ Is the voucher register independently footed and posted

to the general ledger?

$(10)$ Is an independent reconciliation of the accounts

payable subsidiary records and the general ledger

performed regularly?

Audit Objective for Tests of Controls and Substantive Tests of Transactions:

Accuracy Existence or occurrence

Classification Posting & summarization

Completeness Timing

Notes:

Computerized accounting system foots voucher register and updates G$//$L and A$//$P

Computerized accounting system foots voucher register and updates G$//$L and A$//$P

subsidiary records automatically when transaction is entered.

Acquisitions of all tangible goods require a P$.$O$.$ Acquisitions of services do not

require a P$.$O$.$ or receiving report. Invoices for services go directly to Ray and then

follow the approval$/$payment cycle described.

Cynthia accounts for numerical sequence of purchase requisitions, purchase

orders, receiving reports and vouchers monthly. She also reviews acquisitions

transactions to verify that the proper accounts have been debited and credited.

Ray reconciles the G$//$L and A$//$P subsidiary records monthly; Cynthia reviews

reconciliation.

Don cancels voucher and all supporting documents when paid.