Chapter 11 – Auditing the Purchasing Process
45. 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
46. An auditor traced a sample of purchase orders and the related receiving reports to the
purchases journal and the cash disbursements journal. The purpose of this substantive
procedure most likely was to
Chapter 11 – Auditing the Purchasing Process
47. Substantive procedures to examine the occurrence assertion for accounts payable include
48. Substantive procedures to examine the completeness assertion for accounts payable
include
Chapter 11 – Auditing the Purchasing Process
49. Substantive procedures to examine the cutoff assertion for accounts payable include
50. Purchase cutoff procedures should be designed to test whether or not all inventory
Chapter 11 – Auditing the Purchasing Process
51. When searching for unrecorded liabilities at year-end, the population identified for
sampling would be
52. Which of the following is a substantive procedure that an auditor most likely would perform
to verify the existence of recorded accounts payable?
Chapter 11 – Auditing the Purchasing Process
53. Which of the following procedures would an auditor most likely perform in searching for
unrecorded liabilities?
54. Which of the following procedures would an auditor least likely perform before the balance
sheet date?
Chapter 11 – Auditing the Purchasing Process
55. An examination of the balance in the accounts payable account is ordinarily not designed to
56. Accounts payable confirmations are used to test
Chapter 11 – Auditing the Purchasing Process
57. If completeness is a concern for accounts payable, auditors will send accounts payable
confirmations to
58. In auditing accounts payable, an auditor’s procedures most likely would focus primarily on
management’s assertion of
Chapter 11 – Auditing the Purchasing Process
59. 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
60. Which of the following control activities is not usually performed in the accounts payable
department?
Chapter 11 – Auditing the Purchasing Process
61. Which of the following is an internal control that would prevent a paid disbursement
voucher from being presented for payment a second time?
62. The mailing of disbursement checks and remittance advices should be controlled by the
employee who
Chapter 11 – Auditing the Purchasing Process
63. Assertions about classes of transactions and events for the period under audit include
64. Assertions about account balances at the period end include
65. Which of the following test(s) of details of transactions can be used as a dual-purpose test in
conjunction with tests of controls?
Chapter 11 – Auditing the Purchasing Process
66. Which of the following questions would most likely be included in an internal control
questionnaire concerning the completeness assertion for purchases?
67. If payables turnover has increased significantly since the prior year, this is an indication that
which of the following assertions for accounts payable might be violated?