Below are key internal controls associated with acquisition transactions.

For each internal control, indicate which transaction-related audit objective (e.g. completeness) is relevant.

• Specify a suitable test of control for each key internal control.

B I PA O > + KEY INTERNAL CONTROL FOR ACQUISITIONS AUDIT TEST OF CONTROL OBJECTIVE An adequate chart of accounts is used for acquisition transactions. Vendor invoices, receiving reports and purchase orders are internally verified. Procedures require recording of transactions as soon as possible after receipt of the goods. Purchase orders are pre-numbered and accounted for. Acquisitions are approved at the appropriate level.The account payable master file totals are compared with the general ledger. Account classifications are internally verified. The roles of processing purchase orders, receipt of goods and entry of vendor invoices are appropriately segregated. Acquisitions are approved for prices and discounts. Calculations and amounts are internally verified