auditToT2014_2_12.pdf - EXPENDITURE CYCLE CONTROLS TESTING...

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EXPENDITURE CYCLE: CONTROLS TESTING Additional information regarding EXPENDITURE cycle controls The audit team believes that the use of pre-numbered vouchers for recording accounts payables through the CBIS system (agree vendor invoice to purchase order and receiving report) is an effectively designed control activity and the audit team would like to rely on that control. Accordingly, the audit team has decided to test purchase transactions to see whether this control activity is operating effectively. Specifically, you want to determine whether the control related to vendor invoices is performed effectively. Knowing whether the control is operating effectively will help the audit team determine whether all recorded purchases were backed by vouchers supported with purchase orders, invoices and receiving reports (existence of purchases). Also, the audit team would like to test whether all receiving reports are attached and reconciled to purchase orders and vendor invoices, and these invoices are properly recorded in the accounts payable ledger (completeness).
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