Accounts Receivable and Acquisitions Journal

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Part E

Acquisitions Substantive Tests of Transactions|
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TRANSACTION-RELATED AUDIT OBJECTIVES| 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.|

Part F.

Cash Disbursements Substantive Tests of Transactions|
TRANSACTION-RELATED AUDIT OBJECTIVES| 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...
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