The following audit procedures are found in audit programs addressing the acquisition and payment cycle.

Required:

For each audit procedure described:

a Identify the objective of the procedure or the audit assertion being tested.

b Classify the procedure as primarily a substantive test, a test of controls, or both.

Audit procedures

1 The auditor uses software to prepare the report of all debits to Accounts Payable other than payments to suppliers. A sample of the debits is selected and examined for support.

2 The auditor uses software to access all recorded receipts of merchandise that have not been matched to an open purchase order.

3 The client prepares a report from a database showing inventory write-downs by product line and by purchasing agent. The auditor reviews the report and analyses the data in relation to sales volume by product.

4 The auditor creates a spreadsheet showing the amount of scrap generated monthly, by product line.

5 The auditor downloads client data to create report showing monthly sales and inventory levels, by product line.