Acquisition and Payments Cycle Flashcards
1
Q
What is the acquisitions cycle?
A
- Recquisition
- Acquisition
- Receipt
- Payment approval
- Recognition of liability
- Processing and recording cash dispursements and discounts
2
Q
What are the 6 types of acquisitions?
A
Inventiory
PPE
Leasehold improvements
Accounts payable
Manufacturing expenses
Selling and administrative expenses
3
Q
What are the 6 types of acquisitions?
A
Inventiory
PPE
Leasehold improvements
Accounts payable
Manufacturing expenses
Selling and administrative expenses
4
Q
What type of control tests are acquisition cycle tests generally?
A
Attribute sampling tests
5
Q
What are 2 fraud risks in the acquisition cycle?
A
Overstatement of inventory or assets
Understatement of expenses or liability
