Exam 8: Acquisition and Expenditure Cycle 336

To determine whether accounts payable are complete, auditors perform a test to verify that all merchandise received has been recorded. The population for this test consists of all

An audit team most likely would assess control risk at the maximum if the payroll department supervisor is responsible for

Which of the following situations represents an internal control weakness in the payroll department?

The test of controls for purchases, cash disbursements, and accounts payable include the following audit procedures. Next to each of the procedures, indicate the related transaction assertion.

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

The test of controls for payroll includes the following audit procedures. Next to each of the procedures, indicate the related management assertion about transactions.

Matthew Corp. has changed from a system of recording time worked on clock cards to a computerized payroll system in which employees record time in and out with magnetic cards. The computerized system automatically updates all payroll records. Because of this change,

F. Jack, CPA, is the auditor of Jill Corporation. Jack plans to follow last year's work papers in selecting accounts payable to be confirmed. Confirmations were mailed to 50 of Jill's 200 suppliers. The sample was designed to select accounts with the largest balances. Jack and Jill spent a lot of time reconciling minor differences between the confirmation amounts and the accounts payable trial balance.Required:Do you believe Jack should use the same sample design for accounts payable confirmations this year? If not, what suggestions can you give to improve the design?

Cash disbursements are authorized by

_______ and _______ can cause "unmatched" invoices and related "unmatched" receiving reports to be unnoticed.

Which of the following client control activities is not usually performed in the vouchers payable (accounts payable) department?

A list of all purchases might exist only in a _______ file rather than a _______.

After checks are signed for vendor invoices, why should vouchers be marked PAID or otherwise mutilated?

When verifying debits to the perpetual inventory records of a nonmanufacturing company, auditors would be most interested in examining a sample of purchase

Effective control over the cash payroll function would mandate which of the following?

The permanent reference files (master files) in a personnel and payroll database ordinarily do not include which of the following?

The inherent risk that accounts payable may be omitted or otherwise understated typically is

In a test of controls, auditors may trace receiving reports to vouchers recorded in the voucher register. This is a test for

When auditing liabilities account balances, auditors are most concerned with management' assertion about

When confirming accounts payable, emphasis should be put on what kind of accounts?