Exam 8: Acquisition and Expenditure Cycle 336

Assessment of _______ of _______ is important because it governs the nature, timing, and extent of substantive procedures that will be applied in the audit of account balances in the acquisition cycle.

When the _______, _______ and _______ are in hand, the accountants can record the accounts payable.

A _______ is a cover sheet containing all supporting documentation for an acquisition.

A furniture company ordered 84 tables from a supplier. The supplier accidentally sent only 48 tables, but the receiving department at the furniture company accepted the tables. The invoice was eventually received but was for the 84 tables ordered. The furniture company paid the entire amount. Which of the following controls would have been least likely to have prevented this erroneous payment?

An entity's internal control structure requires for every check request that there be an approved voucher, supported by a prenumbered purchase order and a prenumbered receiving report. To determine whether checks are being issued for unauthorized expenditures, an auditor most likely would select items for testing from the population of all

The sampling unit in a test of controls pertaining to the existence or occurrence of payroll transactions ordinarily is a(an):

A voucher would typically contain

The _______ inspects the goods received for _______ and _______ and then puts them in the hands of other responsible persons.

Cutoff tests designed to detect purchases made before the end of the year that have been recorded in the subsequent year most likely would provide assurance about management's assertion of

An auditor traced a sample of purchase orders and the related receiving reports to the purchases journal. The purpose of this substantive audit procedure most likely was to

Which of the following situations indicates a potential material weakness in internal control over acquisition and expenditure?

When auditing PP&E, the auditor's approach is generally to

The purpose of segregating the duties of hiring personnel and distributing payroll checks is to separate the

When considering assertions and obtaining evidence about accounts payable, auditors must put emphasis on the _______ assertion.

Which of the following is the best audit procedure for determining the existence of unrecorded liabilities?

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

Auditors may conclude that depreciation charges are too small by noting

Which of the following personnel department procedures reduces the risk of payroll fraud and represents an appropriate responsibility for the department?

The _______ has transaction initiation authority to add new employees and delete terminated employees.

To provide assurance that each voucher is submitted and paid only once, an auditor most likely would examine a sample of paid vouchers and determine whether each voucher is