Question: The following are audit testing procedures. Account for a sequence of receiving reports and trace selected ones to related vendors invoices and acquisitions journal entries.

The following are audit testing procedures. Account for a sequence of receiving reports and trace selected ones to related vendors’ invoices and acquisitions journal entries. Add the cash payments journal, trace postings of the total to the general ledger and trace postings of individual cash payments to the accounts payable master file. Account for a numerical sequence of cheques in the cash payments journal and examine all cancelled or spoiled cheques for proper cancellation. Required:

a) State whether each procedure above is a test of control, a substantive test of transactions or both.

b) Identify and explain ONE key assertion tested for each procedure.

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