Requirement d. For each control, identify a likely misstatement, assuming that the control does not exist or is not functioning. (Possible misstatements may be used more than once.) (Click the icon to view the possible misstatements.) Possible Misstatements Possible Misstatement Internal Controls j. A misstatement in calculation of a vendor's invoice. 1. Approved purchase orders are required for all acquisitions of goods. Prenumbered receiving reports are prepared as support for acquisitions and 2. numerically accounted for. Dates on receiving reports are compared with vendors' invoices before entry into the 3. acquisitions journal. 4. Account classifications are reviewed by someone other than the preparer. k. Account classification misstatements. - - 5. Vendors' invoices are recalculated before payment. k c I. Bookkeeper takes signed check and changes payee name. m. Cutoff misstatements. n. Duplicate payment for an acquisition. o. Invalid or unauthorized payment. o 6. All checks are signed by the owner or manager The authorized signer compares data on supporting documents with checks and 7. electronic funds transfer authorizations. s p. Misstatements in master file or control account. 8. Checks are mailed by the owner or a person under her supervision after signing. All supporting documents are cancelled after checks are signed or electronic funds 9. transfers are approved. The accounts payable master file is updated, balanced, and reconciled to the general 10. ledger monthly. q. Unauthorized acquisitions of goods. r. Unrecorded acquisitions exist. Print Done