In the following table, there are listed common audit objectives for accounts payable or purchases. For each procedure, list the management assertion, and the related general audit objective. State whether the audit objective is transaction-related or balance-related. (12 marks total, 1.5 marks per line)
Accounts payable or purchases objectives
Transaction- related? (Y/N)
Balance- related? (Y/N)
1. Accounts payable in the accounts payable trial balance are for valid purchases.
2. Recorded acquisitions are for goods and services received, consistent with the best interests of the client.
3. All acquisition transactions are recorded.
4. Recorded acquisition transactions are recorded at the correct amount.
5. Acquisition transactions are correctly allocated between current and long-term.
6. Acquisition transactions are recorded on the correct dates.
7. Purchase transactions are properly included in the vendor and inventory master files, and are correctly posted to the general ledger.
8. The accounts payable recorded in liabilities are obligations of the company.
1. Management assertion: Existence Audit objective : Balance- related 2. Management assertion: Occurrence Audit objective:... View the full answer