Purchases AA_Chapter_23

Purchases AA_Chapter_23 - Chapter 23 Audit of the Purchases...

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© Peter T. Y. Lau and Nelson C. Y. Lam © Pilot Publishing Co. Ltd. 2009 Auditing and Assurance in Hong Kong Chapter 23 Audit of the Purchases and Payments Cycle Overstatement vs. Understatement (Trade receivable) (Trade payable) Activity: Perpetual Inventory Systems Periodic Inventory System ( No up-to-date records of either inventory or cost of goods sold.) On September 5, Worley Co. purchased 100 laser lights for resale for $30 per unit from Electronic City on account.
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© Peter T. Y. Lau and Nelson C. Y. Lam © Pilot Publishing Co. Ltd. 2009 Auditing and Assurance in Hong Kong Agenda 1. The Purchases and Payments Cycle 2. Acquisitions and Payments 3. Trade Receivables v.s. Trade Payables 4. 5. 6. Cash Payments: Key Internal Controls 7. Cash Payments: Audit Procedures
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© Peter T. Y. Lau and Nelson C. Y. Lam © Pilot Publishing Co. Ltd. 2009 Auditing and Assurance in Hong Kong 1. The Purchases and Payments Cycle Purchases (credit purchases) Trade Payables Cash Payments (cash purchases)
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© Peter T. Y. Lau and Nelson C. Y. Lam © Pilot Publishing Co. Ltd. 2009 Auditing and Assurance in Hong Kong Acquisitions - Goods: F.O.B destination - when goods are received
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Purchases AA_Chapter_23 - Chapter 23 Audit of the Purchases...

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