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Acquisitions Substantive Tests of Transactions
More than one audit procedure is listed for certain objectives even though the requirement is for only one procedure.
Transaction-Related Audit Objective Substantive Audit Procedures
Occurrence Compare prices on vendor invoices with approved price limits established by management.
Review the acquisitions journal, general ledger, and accounts payable master file for large or unusual amounts.
Completeness Trace a sample of receiving reports to the acquisitions journal.
Trace from a file of vendors' invoices to the acquisitions journal.
Trace from additions in perpetual inventory records to recorded acquisitions.
Accuracy Compare amounts for entries in acquisitions journal to related vendors' invoices, purchase orders and receiving reports.
Recompute information on vendor invoices.
Compare prices on vendor invoices with approved price limits established by management.
Posting and Summarization Trace individual entries in accounts payable master file to acquisitions journal.
Classification Examine vendors' invoices for proper classification.
Compare classification with chart of accounts by reference to vendors' invoices.
Timing Compare dates of receiving reports and vendors' invoices with dates in the acquisitions journal.
Cash Disbursements Substantive Tests of Transactions
More than one audit procedure is listed for certain objectives even though the requirement is for only one procedure.
Transaction-Related Audit Objective Substantive Audit Procedures
Occurrence
Trace cancelled check numbers in the cash disbursements journal to related cancelled checks and examine for payee, name, and
amount.
Examine cancelled check for authorized signature, proper endorsement, and cancellation by the bank.
Review the cash disbursements journal, general ledger, and accounts payable master file for large or unusual amounts.
Trace cancelled check to the related acquisitions journal entry and examine for payee name and amount.
Completeness Trace entries in acquisitions journal to subsequent payment in cash disbursements journal.
Accuracy Compare cancelled checks with the related acquisitions journal and cash disbursements journal entries.
Recompute cash discounts.
Posting and Summarization Trace individual entries in accounts payable master file to cash disbursements journal.
Classification Compare classification with chart of accounts by reference to vendors' invoices and acquisitions journal.
Timing Compare dates on cancelled checks with cash disbursements journal.
Compare dates on cancelled checks with the bank cancellation date.
