Exam 11: Auditing the Purchasing Process

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

With respect to a small company's system of purchasing supplies,an auditor's primary concern should be to obtain satisfaction that supplies ordered and paid for have been

Which of the following describes a permanent difference?

Which of the following accounts is not affected by cash disbursement transactions?

Which of the following control activities is not usually performed in the accounts payable department?

As an in-charge auditor,you are reviewing a summary of control weaknesses in cash disbursement procedures.Which one of the following weaknesses,standing alone,should cause you the least concern?

Purchase cutoff procedures should be designed to test whether or not all inventory

Accounts payable confirmations are used to test

Assertions about account balances at the period end include

Assertions about classes of transactions and events for the period under audit include

Which of the following test(s)of details of transactions can be used as a dual-purpose test in conjunction with tests of controls?

Budd,the purchasing agent for Lake Hardware Wholesalers,has a relative who owns a retail hardware store.Budd arranged for hardware to be delivered by manufacturers to the retail store on a C.O.D.basis,thereby enabling his relative to buy at Lake's wholesale prices.Budd was probably able to accomplish this because of Lake's poor internal control over

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

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

Substantive procedures to examine the occurrence assertion for accounts payable include

A voucher

The cutoff assertion for accounts payable includes

When searching for unrecorded liabilities at year-end,the population identified for sampling would be

When an auditor selects a sample of items from the vouchers payable register for the last month of the period under audit and traces these items to underlying documents,the auditor is gathering evidence primarily in support of the assertion that

Which of the following questions would most likely be included in an internal control questionnaire concerning the completeness assertion for purchases?