1.)Review purchase and expenditure procedures with accounts payable personnel, receiving personnel, cashier, and vice president of finance department. 2.)Examine general ledger for large and unusual disbursement amounts. 3.)Determine whether purchases greater than $5,000 have additional approval.
Audit Objective:Recorded acquisitions are for goods and services received.
1.)Examine documents in voucher package for existence.
2.)Agree documents in voucher package to each other.
3.)Examine indication of cancellation on voucher package and disbursement voucher. 4.)Examine indication of internal verification (receiving clerk’s signature on receiving report). 5.)Examine other underlying documents in voucher package for reasonableness and authenticity. 6.)Examine vendor master file for unusual vendors.
7.)Trace inventory acquisitions to inventory master file.
8.)Examine fixed assets acquired.
Audit Objective:Existing acquisitions transactions are recorded.
1.)Account for a sequence of purchase orders.
2.)Account for a sequence of receiving reports.
3.)Account for a sequence of disbursement vouchers.
4.)Trace receiving reports to the inventory journal.
5.)Trace vendors’ invoices to the accounts payable master file.
Audit Objective:Recorded acquisition transactions are accurate.
1.)Examine indication of approval.
2.)Compare recorded transactions in the inventory journals with the voucher package and other supporting documentation. 3.)Recalculate the clerical accuracy on the vendors’ invoices.
Audit Objective:Acquisitions transactions are properly classified.
1.)Examine procedures manual and chart of accounts.
2.)Examine indication of internal verification.
3.)Compare classification with chart of accounts by referring to vendors’ invoices.
Audit Objective:Acquisition transactions are recorded on the correct dates....