Assertion and Related Control Activity - Purchase Transactions Flashcards Preview

Auditing and Attestation > Assertion and Related Control Activity - Purchase Transactions > Flashcards

Flashcards in Assertion and Related Control Activity - Purchase Transactions Deck (15)
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1

Occurrence - Purchase not recorded without approved purchase order and receiving report

Test a sample of vouchers for the presence of an authorized purchase order and receiving report.

2

Occurrence - Accounting for numerical sequence of receiving reports and vouchers

Review and test client procedures for accounting for numerical sequence of receiving reports and vouchers

3

Completeness - Accounting for numerical sequence of purchase orders, receiving reports, and vouchers

Review client's procedures for accounting for numerical sequence of purchase orders, receiving reports, and vouchers

4

Occurrence - Receiving reports matched to vendor invoices and entered in the purchases journal

Trace a sample of receiving reports to their respective vendor invoices and vouchers.

5

Authorization - Approval of acquisitions consistent with the client's authorization dollar limits

Review client's dollar limits authorization for acquisitions

6

Authorization - Approved purchase requisition and purchase order

Examine purchase requisitions or purchase orders for proper approval

7

Authorization - Competitive bidding procedures followed

Review client's competitive bidding procedures

8

Accuracy - Mathematical accuracy of vendor invoice verified

Recompute the mathematical accuracy of vendor invoice

9

Accuracy - Purchase order agreed to receiving report and vendor's invoice for product, quantity, and price

Agree the information on a sample of voucher packets for product, quantity, and price

10

Accuracy - Vouchers reconciled to daily accounts payable listing (or daily postings to purchases journal) and then reconciled with postings to accounts payable subsidiary records

Examine reconciliation of vouchers to daily accounts payable report (or reconciliation of entries in purchases journal with entries to accounts payable subsidiary records)

11

Accuracy - Voucher register or accounts payable subsidiary records reconciled to general ledger control account

Review reconciliation of subsidiary records to general ledger control account

12

Cutoff - All receiving reports forwarded to the accounts payable department daily

Compare the dates on receiving reports with the dates on the relevant vouchers

13

Cutoff - Existence of procedures that require recording the purchases as soon as possible after goods or services are received

Compare the dates on vouchers with the dates they were recorded in the purchases journal

14

Classification - Chart of accounts

Review purchases journal and general ledger for reasonableness

15

Classification - Independent approval and review of accounts charged for acquisitions

Examine a sample of vouchers for proper classification