Exam 10: Auditing Purchases, Payables and Payroll

The occurrence objective for purchases, payables and payroll requires that accounts payable and payroll liabilities include all amounts owed by the entity to suppliers of goods and services at the end of the reporting period.

Prior to recording purchases transactions, supplier's invoices are checked and approved in the accounts department. Controls over this function include all of the following except

A special supervisor's password is required in order to add a new employee to the personnel data master file. This control relates primarily to the

The quantity ordered may not be displayed on the copy of the purchase order sent directly to the

Which of these is not a source of potential misstatement for the function of recording a payment?

Which of these tests would be the least useful when using analytical procedures on expenses?

The specific audit objective "accounts payable are liabilities of the entity at the balance date" is derived from the:

Segregation of the functions of payroll and personnel do all of the following, except

A confirmation is performed less frequently for accounts payable than it is for accounts receivable because

Payroll functions include all of the following except

Which of these is not directly affected by purchases and payments transactions?

Confirmation of accounts payable will provide the least amount of evidence for the

The batching of payroll documents is normally done in the

Which of these is the least likely risk factor for payroll?

A substantive audit procedure for verifying accounts payable should include tracing the opening balance to the previous year's working papers.

Which of the following is not a factor that tends to increase the inherent risk for purchases and payables?

Controls specific to the recording of cash payments include which of the following?

Purchase orders become part of the transaction trail of documentary evidence that directly supports which assertion for purchase transactions?

Identify and describe three key issues relevant to the audit of purchases, payables and payroll.

In witnessing a payroll distribution, the auditor would not be expected to observe that