Exam 12: Purchases, Payables, and Payments Processtrue

The auditor decided to test accounts payable by sending confirmations to selected vendors.The auditor's best approach in selecting the vendor accounts to confirm is to

In assessing control risk for purchases, an auditor vouches a sample of entries in the accounts payable trial balance to the supporting documents.Which account assertion would this test of controls most likely support?

A company's internal control system requires that an approved payables voucher, supported by a purchase order and a receiving report accompany every cheque requisition.To determine whether cheques are being issued for unauthorized expenditures, an auditor is most likely to select items for testing from the population of all

When using confirmations to provide evidence about the completeness assertion for accounts payable, the appropriate population most likely would be

The statement that items on the accounts payable register must be supported by a completed voucher package containing a services purchase order and evidence the service was provided is a specific example of which control objective?

If the auditor selects a sample of open accounts payable and vouches the details to supporting purchase documents the auditor is testing the objective of validity.

Which of the following audit procedures is best for identifying unrecorded trade accounts payable?

Explain why auditors must put greater emphasis on the completeness assertion when auditing accounts payable.Contrast this with the audit of assets.

What documentary evidence is appropriate in attempting to determine if recorded purchase transactions are valid and prices on the vendors' invoices are correct?

Identify the accounts payable audit objectives that the auditors must consider in determining the audit procedures to be performed.

In Cassette 12.4 (Amortize the "Drum" Slowly), Candid Production overvalued net assets by taking too little amortization.Which of the following was the lesson for the auditors in this case?

When auditing merchandise inventory at year-end, the auditor performs a purchase cut off test to obtain evidence that

An auditor wants to perform tests of controls on a client's cash disbursement procedures.If the control procedures leave no audit trail or documentary evidence, the auditor is most likely to test the procedures by

The requirement that "perpetual inventory records must be updated as of the date goods are received" is an example of a control that satisfies the "proper period" internal control objective.

Audit procedures used in the observation of a client's physical inventory count are designed primarily to

Which of the following procedures is an auditor most likely to perform in searching for unrecorded payables?

Which of the following accounts would the auditor review in order to obtain reasonable assurance that additions to the equipment (fixed asset) account are not understated?

To determine whether accounts payable is complete, an auditor performs a test to verify that all merchandise received is recorded.The population of documents for this test consists of all

Why are payables vouchers marked "paid" after cheques have been issued in payment of vendor invoices?

Quantities recorded during the physical count of inventories are greater than the quantities in the perpetual records.This could be the result of a failure to record