The following are some tests of transaction procedures frequently performed in the acquisition and payment cycle. Each is to be done on a sample basis.

Required
a. State whether each procedure is primarily a test of controls, a substantive test of transactions, or a dual-purpose test.
b. State the purpose(s) of each procedure.
Audit Procedures
1. Trace transactions recorded in the purchase journal to supporting documentation, comparing the vendor's name, total dollar amounts, and authorization for purchase.
2. Account for a sequence of receiving reports, and trace selected ones to related vendor's invoices and purchase journal entries.
3. Select a sample of cash disbursements noting evidence that the details on vendor invoices were clerically checked and compared with the purchase order and receiving report and that the account charged and payment were approved.
4. Same as No. 3 but in addition the auditor compares the invoice detail with the supporting documents and assesses the appropriateness of the account charged.
5. Foot the cash disbursements journal, trace postings of the total to the general ledger, and trace postings of individual payments to the accounts payable master file.
6. Account for a numerical sequence of checks in the cash disbursements journal, and examine all voided or spoiled checks for proper cancellation.
7. Compare dates on canceled checks with dates on the cash disbursements journal and the bank cancellation date.