The following questions concern internal controls and accumulating evidence in the acquisition and payment cycle. Choose the best answer.
a. While auditing a client’s purchase transactions, an auditor selects a sample of vouchers and then compares the dates on the vouchers to the dates on which the corresponding transactions were actually recorded in the client’s purchase journal. The audit procedure is most likely designed to test the
(1) occurrence assertion.
(2) completeness assertion.
(3) accuracy assertion.
(4) cutoff assertion.
b. 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?
(1) Completeness
(2) Occurrence
(3) Valuation and allocation
(4) Rights and obligations
c. Which of the following tests would an auditor be least likely to perform during an audit of accounts payable?
(1) Examine open vouchers, receiving reports, and vendor invoices shortly after the year end
(2) Trace a sample of vouchers to the purchase journal
(3) Send out accounts payable confirmations
(4) Select cash disbursements made shortly after year end and examine supporting documentation such as receiving reports and vendor invoices
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