EGRATED CASE APPLICATION- ACLE MANUFACTURING: PART V 14-35 (OBJECTIVES 14-3, 14-5) In Part IV of this case study, you obtained an understanding audit objective for acquisition and cash disbursement transactions. The purpose of Part Vis of internal control and made an initial assessment of control risk for each transaction-related continue the assessment of control risk by determining the appropriate tests of controls and substantive tests of transactions. In order to do this, you must complete the steps needed to prepare a high-quality performance format audit program for tests of controls and substan Assume in Part IV that you identified the following as the key controls you want to tive tests of transactions for acquisitions and cash disbursements. rely on (even though your answers were likely different from these): 1. Segregation of the purchasing, receiving, and cash disbursements functions 2. Use of prenumbered voucher packages, properly accounted for 3. Use of prenumbered checks, properly accounted for 4. Use of prenumbered receiving reports, properly accounted for 5. Internal verification of document package before check preparation 6. Review of supporting documents and signing of checks by an independent, authorized person 7. Cancellation of documents prior to signing of the check 8. Monthly reconciliation of the accounts payable master file with the general ledger LICATION OF THE AUDIT PROCESS TO THE SALES AND COLLECTION CYCLE