AUD 3 Internal Control 14 - 1 Spending Cycle (PRAISE) Flashcards
Spending Cycle
(Purchases / Accounts Payable / Cash Disbursements)
The auditor should look for specific applications of the different control activities to the spending cycle.
Spending Cycle
(Purchases / Accounts Payable / Cash Disbursements)
The auditor should look for specific applications of the different control activities to the spending cycle.
Spending Cycle
The auditor should look for specific applications of the different control activities to the sp___ing cycle.
Spending Cycle
The auditor should look for specific applications of the different control activities to the spending cycle.
Spending Cycle
The auditor should look for specific ap_________s of the different control activities to the spending cycle.
Spending Cycle
The auditor should look for specific applications of the different control activities to the spending cycle.
Spending Cycle
The auditor should look for specific applications of the different co______ activities to the spending cycle.
Spending Cycle
The auditor should look for specific applications of the different control activities to the spending cycle.
Spending Cycle
The au_____ should look for specific applications of the different control activities to the spending cycle.
Spending Cycle
The auditor should look for specific applications of the different control activities to the spending cycle.
Spending Cycle
The auditor should look for specific applications of the different control activities to the spending cycle.
Commonly-tested examples of a____ing procedures used to understand the internal control structure related to spending include (PRAISE):
Spending Cycle
The auditor should look for specific applications of the different control activities to the spending cycle.
Commonly-tested examples of auditing procedures used to understand the internal control structure related to spending include (PRAISE):
Spending Cycle
The auditor should look for specific applications of the different control activities to the spending cycle.
Commonly-tested examples of auditing pro______s used to understand the internal control structure related to spending include (PRAISE):
Spending Cycle
The auditor should look for specific applications of the different control activities to the spending cycle.
Commonly-tested examples of auditing procedures used to understand the internal control structure related to spending include (PRAISE):
Spending Cycle
The auditor should look for specific applications of the different control activities to the spending cycle.
Commonly-tested examples of auditing procedures used to und_______ the internal control structure related to spending include (PRAISE):
Spending Cycle
The auditor should look for specific applications of the different control activities to the spending cycle.
Commonly-tested examples of auditing procedures used to understand the internal control structure related to spending include (PRAISE):
Spending Cycle
The auditor should look for specific applications of the different control activities to the spending cycle.
Commonly-tested examples of auditing procedures used to understand the internal control st________ related to spending include (PRAISE):
Spending Cycle
The auditor should look for specific applications of the different control activities to the spending cycle.
Commonly-tested examples of auditing procedures used to understand the internal control structure related to spending include (PRAISE):
Spending Cycle
The auditor should look for specific applications of the different control activities to the spending cycle.
Examples of auditing procedures used to understand the internal control structure related to spending include (PRAISE):
- Physical controls
- Recording
- Authorization
- Independent checks
- Segregation of duties
- Evaluate performance
Spending Cycle
The auditor should look for specific applications of the different control activities to the spending cycle.
Examples of auditing procedures used to understand the internal control structure related to spending include (PRAISE):
- Physical controls
- Recording
- Authorization
- Independent checks
- Segregation of duties
- Evaluate performance
Spending Cycle
The auditor should look for specific applications of the different control activities to the spending cycle.
Examples of auditing procedures used to understand the internal control structure related to spending include (PRAISE):
- Physical con____s
- Recording
- Authorization
- Independent checks
- Segregation of duties
- Evaluate performance
Spending Cycle
The auditor should look for specific applications of the different control activities to the spending cycle.
Examples of auditing procedures used to understand the internal control structure related to spending include (PRAISE):
- Physical controls
- Recording
- Authorization
- Independent checks
- Segregation of duties
- Evaluate performance
Spending Cycle
Examples of auditing procedures used to understand the internal control structure related to spending (PRAISE):
- Phy_____ controls
- Recording
- Authorization
- Independent checks
- Segregation of duties
- Evaluate performance
Spending Cycle
Examples of auditing procedures used to understand the internal control structure related to spending (PRAISE):
- Physical controls
- Recording
- Authorization
- Independent checks
- Segregation of duties
- Evaluate performance
Spending Cycle
Examples of auditing procedures used to understand the internal control structure related to spending (PRAISE):
- Physical controls
- Re_______
- Authorization
- Independent checks
- Segregation of duties
- Evaluate performance
Spending Cycle
Examples of auditing procedures used to understand the internal control structure related to spending (PRAISE):
- Physical controls
- Recording
- Authorization
- Independent checks
- Segregation of duties
- Evaluate performance
Spending Cycle
Examples of auditing procedures used to understand the internal control structure related to spending (PRAISE):
- Physical controls
- Recording
- Auth_________
- Independent checks
- Segregation of duties
- Evaluate performance
Spending Cycle
Examples of auditing procedures used to understand the internal control structure related to spending (PRAISE):
- Physical controls
- Recording
- Authorization
- Independent checks
- Segregation of duties
- Evaluate performance
Spending Cycle
Examples of auditing procedures used to understand the internal control structure related to spending (PRAISE):
- Physical controls
- Recording
- Authorization
- Independent ch___s
- Segregation of duties
- Evaluate performance
Spending Cycle
Examples of auditing procedures used to understand the internal control structure related to spending (PRAISE):
- Physical controls
- Recording
- Authorization
- Independent checks
- Segregation of duties
- Evaluate performance
Spending Cycle
Examples of auditing procedures used to understand the internal control structure related to spending (PRAISE):
- Physical controls
- Recording
- Authorization
- Ind_________ checks
- Segregation of duties
- Evaluate performance
Spending Cycle
Examples of auditing procedures used to understand the internal control structure related to spending (PRAISE):
- Physical controls
- Recording
- Authorization
- Independent checks
- Segregation of duties
- Evaluate performance
Spending Cycle
Examples of auditing procedures used to understand the internal control structure related to spending (PRAISE):
- Physical controls
- Recording
- Authorization
- Independent checks
- Se_________ of duties
- Evaluate performance
Spending Cycle
Examples of auditing procedures used to understand the internal control structure related to spending (PRAISE):
- Physical controls
- Recording
- Authorization
- Independent checks
- Segregation of duties
- Evaluate performance
Spending Cycle
Examples of auditing procedures used to understand the internal control structure related to spending (PRAISE):
- Physical controls
- Recording
- Authorization
- Independent checks
- Segregation of d___es
- Evaluate performance
Spending Cycle
Examples of auditing procedures used to understand the internal control structure related to spending (PRAISE):
- Physical controls
- Recording
- Authorization
- Independent checks
- Segregation of duties
- Evaluate performance
Spending Cycle
Examples of auditing procedures used to understand the internal control structure related to spending (PRAISE):
- Physical controls
- Recording
- Authorization
- Independent checks
- Segregation of duties
- Eva_______ performance
Spending Cycle
Examples of auditing procedures used to understand the internal control structure related to spending (PRAISE):
- Physical controls
- Recording
- Authorization
- Independent checks
- Segregation of duties
- Evaluate performance
Spending Cycle
Examples of auditing procedures used to understand the internal control structure related to spending (PRAISE):
- Physical controls
- Recording
- Authorization
- Independent checks
- Segregation of duties
- Evaluate perfo_______
Spending Cycle
Examples of auditing procedures used to understand the internal control structure related to spending (PRAISE):
- Physical controls
- Recording
- Authorization
- Independent checks
- Segregation of duties
- Evaluate performance
Spending Cycle
Examples of auditing procedures used to understand the internal control structure related to spending (PRAISE):
- Physical controls
- Recording
- Authorization
- Independent checks
- Segregation of duties
- Evaluate performance
• Physical controls
– Verify that all goods are received by the receiving department and returns are shipped by the shipping department.
Spending Cycle
Examples of auditing procedures used to understand the internal control structure related to spending (PRAISE):
- Physical controls
- Recording
- Authorization
- Independent checks
- Segregation of duties
- Evaluate performance
• Physical controls
– Verify that all goods are received by the receiving department and returns are shipped by the shipping department.
Spending Cycle
Examples of auditing procedures used to understand the internal control structure related to spending (PRAISE):
• Physical controls
– Verify that all goods are re____ed by the receiving department
Spending Cycle
Examples of auditing procedures used to understand the internal control structure related to spending (PRAISE):
• Physical controls
– Verify that all goods are received by the receiving department
Spending Cycle
(PRAISE)
• Physical controls
– Verify that all goods are received by the re____ing department
Spending Cycle
(PRAISE)
• Physical controls
– Verify that all goods are received by the receiving department
Spending Cycle
(PRAISE)
• Physical controls
– V____y that all goods are received by the receiving department
Spending Cycle
(PRAISE)
• Physical controls
– Verify that all goods are received by the receiving department
Spending Cycle
(PRAISE)
• Physical controls
– Verify that a__ goods are received by the receiving department
Spending Cycle
(PRAISE)
• Physical controls
– Verify that all goods are received by the receiving department
Spending Cycle
(PRAISE)
• Physical controls
– Verify that all goods are received by the receiving de__________ and returns are shipped by the shipping department.
Spending Cycle
(PRAISE)
• Physical controls
– Verify that all goods are received by the receiving department and returns are shipped by the shipping department.
Spending Cycle
(PRAISE)
• Physical controls
– Verify that all goods are received by the receiving department and returns are shipped by the shipping department.
Spending Cycle
(PRAISE)
• Physical controls
– Verify that all goods are received by the receiving department and returns are shipped by the shipping department.
Spending Cycle
(PRAISE)
• Physical controls
– Verify that all goods are received by the receiving department and returns are sh___ed by the shipping department.
Spending Cycle
(PRAISE)
• Physical controls
– Verify that all goods are received by the receiving department and returns are shipped by the shipping department.
Spending Cycle
(PRAISE)
• Physical controls
– Verify that all goods are received by the receiving department and returns are shipped by the sh___ing department.
Spending Cycle
(PRAISE)
• Physical controls
– Verify that all goods are received by the receiving department and returns are shipped by the shipping department.
Spending Cycle
(PRAISE)
• Phy_____ controls
– Verify that all goods are received by the receiving department and returns are shipped by the shipping department.
Spending Cycle
(PRAISE)
• Physical controls
– Verify that all goods are received by the receiving department and returns are shipped by the shipping department.
Spending Cycle
(PRAISE)
• Physical con____s
– Verify that all goods are received by the receiving department and returns are shipped by the shipping department.
Spending Cycle
(PRAISE)
• Physical controls
– Verify that all goods are received by the receiving department and returns are shipped by the shipping department.
Spending Cycle
Examples of auditing procedures used to understand the internal control structure related to spending (PRAISE):
- Physical controls
- Recording
- Authorization
- Independent checks
- Segregation of duties
- Evaluate performance
• Physical controls
– Verify that all goods are received by the receiving department and returns are shipped by the shipping department.
• Recording
– Verify that receiving reports are prepared for all goods received and that debit memos are prepared for all goods that are returned.
Spending Cycle
Examples of auditing procedures used to understand the internal control structure related to spending (PRAISE):
- Physical controls
- Recording
- Authorization
- Independent checks
- Segregation of duties
- Evaluate performance
• Physical controls
– Verify that all goods are received by the receiving department and returns are shipped by the shipping department.
• Recording
– Verify that receiving reports are prepared for all goods received and that debit memos are prepared for all goods that are returned.
Spending Cycle
Examples of auditing procedures used to understand the internal control structure related to spending (PRAISE):
- Physical controls
- Recording
- Authorization
- Independent checks
- Segregation of duties
- Evaluate performance
• Recording
– Verify that receiving reports are prepared for all goods received and that debit memos are prepared for all goods that are returned.
Spending Cycle
Examples of auditing procedures used to understand the internal control structure related to spending (PRAISE):
- Physical controls
- Recording
- Authorization
- Independent checks
- Segregation of duties
- Evaluate performance
• Recording
– Verify that receiving reports are prepared for all goods received and that debit memos are prepared for all goods that are returned.
Spending Cycle
(PRAISE)
- Physical controls
- Recording
- Authorization
- Independent checks
- Segregation of duties
- Evaluate performance
• Recording
– Verify that re____ing reports are prepared for all goods received
Spending Cycle
(PRAISE)
- Physical controls
- Recording
- Authorization
- Independent checks
- Segregation of duties
- Evaluate performance
• Recording
– Verify that receiving reports are prepared for all goods received
Spending Cycle
(PRAISE)
• Recording
– Verify that receiving re____s are prepared for all goods received
Spending Cycle
(PRAISE)
• Recording
– Verify that receiving reports are prepared for all goods received
Spending Cycle
(PRAISE)
• Recording
– Verify that receiving reports are prepared for a__ goods received
Spending Cycle
(PRAISE)
• Recording
– Verify that receiving reports are prepared for all goods received
Spending Cycle
(PRAISE)
• Recording
– V____y that receiving reports are prepared for all goods received
Spending Cycle
(PRAISE)
• Recording
– Verify that receiving reports are prepared for all goods received
Spending Cycle
(PRAISE)
• Recording
– Verify that receiving reports are pr______d for all goods received and that debit memos are prepared for all goods that are returned.
Spending Cycle
(PRAISE)
• Recording
– Verify that receiving reports are prepared for all goods received and that debit memos are prepared for all goods that are returned.
Spending Cycle
(PRAISE)
• Recording
– Verify that receiving reports are prepared for all goods received and that debit memos are pr______ed for all goods that are returned.
Spending Cycle
(PRAISE)
• Recording
– Verify that receiving reports are prepared for all goods received and that debit memos are prepared for all goods that are returned.
Spending Cycle
(PRAISE)
• Recording
– Verify that receiving reports are prepared for all goods received and that de__t memos are prepared for all goods that are returned.
Spending Cycle
(PRAISE)
• Recording
– Verify that receiving reports are prepared for all goods received and that debit memos are prepared for all goods that are returned.
Spending Cycle
(PRAISE)
• Recording
– Verify that receiving reports are prepared for all goods received and that debit memos are prepared for a__ goods that are returned.
Spending Cycle
(PRAISE)
• Recording
– Verify that receiving reports are prepared for all goods received and that debit memos are prepared for all goods that are returned.
Spending Cycle
(PRAISE)
• Recording
– Verify that receiving reports are prepared for all goods received and that debit memos are prepared for all goods that are re____ed.
Spending Cycle
(PRAISE)
• Recording
– Verify that receiving reports are prepared for all goods received and that debit memos are prepared for all goods that are returned.
Spending Cycle
(PRAISE)
• Re____ing
– Verify that receiving reports are prepared for all goods received and that debit memos are prepared for all goods that are returned.
Spending Cycle
(PRAISE)
• Recording
– Verify that receiving reports are prepared for all goods received and that debit memos are prepared for all goods that are returned.
Spending Cycle
(PRAISE)
• Recording
– Verify that receiving reports are prepared for all goods received and that debit m___s are prepared for all goods that are returned.
Spending Cycle
(PRAISE)
• Recording
– Verify that receiving reports are prepared for all goods received and that debit memos are prepared for all goods that are returned.
Spending Cycle
Examples of auditing procedures used to understand the internal control structure related to spending (PRAISE):
- Physical controls
- Recording
- Authorization
- Independent checks
- Segregation of duties
- Evaluate performance
• Recording
– Verify that receiving reports are prepared for all goods received and that debit memos are prepared for all goods that are returned.
• Authorization
– Select individual cancelled checks and vouch them to the purchase orders, receiving reports, vendor invoices, and payment vouchers.
Spending Cycle
Examples of auditing procedures used to understand the internal control structure related to spending (PRAISE):
- Physical controls
- Recording
- Authorization
- Independent checks
- Segregation of duties
- Evaluate performance
• Recording
– Verify that receiving reports are prepared for all goods received and that debit memos are prepared for all goods that are returned.
• Authorization
– Select individual cancelled checks and vouch them to the purchase orders, receiving reports, vendor invoices, and payment vouchers.
Spending Cycle
Examples of auditing procedures used to understand the internal control structure related to spending (PRAISE):
- Physical controls
- Recording
- Authorization
- Independent checks
- Segregation of duties
- Evaluate performance
• Authorization
– Select individual cancelled checks and vouch them to the purchase orders, receiving reports, vendor invoices, and payment vouchers.
Spending Cycle
Examples of auditing procedures used to understand the internal control structure related to spending (PRAISE):
- Physical controls
- Recording
- Authorization
- Independent checks
- Segregation of duties
- Evaluate performance
• Authorization
– Select individual cancelled checks and vouch them to the purchase orders, receiving reports, vendor invoices, and payment vouchers.
Spending Cycle
(PRAISE)
- Physical controls
- Recording
- Authorization
- Independent checks
- Segregation of duties
- Evaluate performance
• Authorization
– Select individual cancelled ch___s
Spending Cycle
(PRAISE)
- Physical controls
- Recording
- Authorization
- Independent checks
- Segregation of duties
- Evaluate performance
• Authorization
– Select individual cancelled checks
Spending Cycle
(PRAISE)
• Authorization
– Select in_______al cancelled checks
Spending Cycle
(PRAISE)
• Authorization
– Select individual cancelled checks
Spending Cycle
(PRAISE)
• Authorization
– Select individual ca_____ed checks
Spending Cycle
(PRAISE)
• Authorization
– Select individual cancelled checks
Spending Cycle
(PRAISE)
• Authorization
– Select individual cancelled checks and vouch them to the purchase or___s,
Spending Cycle
(PRAISE)
• Authorization
– Select individual cancelled checks and vouch them to the purchase orders,
Spending Cycle
(PRAISE)
• Authorization
– Select individual cancelled checks and vouch them to the purchase orders, re____ing reports,
Spending Cycle
(PRAISE)
• Authorization
– Select individual cancelled checks and vouch them to the purchase orders, receiving reports,
Spending Cycle
(PRAISE)
• Authorization
– Select individual cancelled checks and vouch them to the purchase orders, receiving reports, vendor in_____s,
Spending Cycle
(PRAISE)
• Authorization
– Select individual cancelled checks and vouch them to the purchase orders, receiving reports, vendor invoices,
Spending Cycle
(PRAISE)
• Authorization
– Select individual cancelled checks and vouch them to the purchase orders, receiving reports, vendor invoices, and pay____ vouchers.
Spending Cycle
(PRAISE)
• Authorization
– Select individual cancelled checks and vouch them to the purchase orders, receiving reports, vendor invoices, and payment vouchers.
Spending Cycle
(PRAISE)
• Authorization
– S_____t individual cancelled checks and vouch them to the purchase orders, receiving reports, vendor invoices, and payment vouchers.
Spending Cycle
(PRAISE)
• Authorization
– Select individual cancelled checks and vouch them to the purchase orders, receiving reports, vendor invoices, and payment vouchers.
Spending Cycle
(PRAISE)
• Authorization
– Select individual cancelled checks and v____ them to the purchase orders, receiving reports, vendor invoices, and payment vouchers.
Spending Cycle
(PRAISE)
• Authorization
– Select individual cancelled checks and vouch them to the purchase orders, receiving reports, vendor invoices, and payment vouchers.
Spending Cycle
(PRAISE)
• Auth________
– Select individual cancelled checks and vouch them to the purchase orders, receiving reports, vendor invoices, and payment vouchers.
Spending Cycle
(PRAISE)
• Authorization
– Select individual cancelled checks and vouch them to the purchase orders, receiving reports, vendor invoices, and payment vouchers.
Spending Cycle
Examples of auditing procedures used to understand the internal control structure related to spending (PRAISE):
- Physical controls
- Recording
- Authorization
- Independent checks
- Segregation of duties
- Evaluate performance
• Authorization
– Select individual cancelled checks and vouch them to the purchase orders, receiving reports, vendor invoices, and payment vouchers.
• Independent checks
– Verify that the client periodically performs inventory counts and reconciles amounts on hand to inventory records so as to know when inventory has been lost or stolen.
Spending Cycle
Examples of auditing procedures used to understand the internal control structure related to spending (PRAISE):
- Physical controls
- Recording
- Authorization
- Independent checks
- Segregation of duties
- Evaluate performance
• Authorization
– Select individual cancelled checks and vouch them to the purchase orders, receiving reports, vendor invoices, and payment vouchers.
• Independent checks
– Verify that the client periodically performs inventory counts and reconciles amounts on hand to inventory records so as to know when inventory has been lost or stolen.
Spending Cycle
Examples of auditing procedures used to understand the internal control structure related to spending (PRAISE):
- Physical controls
- Recording
- Authorization
- Independent checks
- Segregation of duties
- Evaluate performance
• Independent checks
– Verify that the client periodically performs inventory counts and reconciles amounts on hand to inventory records so as to know when inventory has been lost or stolen.
Spending Cycle
Examples of auditing procedures used to understand the internal control structure related to spending (PRAISE):
- Physical controls
- Recording
- Authorization
- Independent checks
- Segregation of duties
- Evaluate performance
• Independent checks
– Verify that the client periodically performs inventory counts and reconciles amounts on hand to inventory records so as to know when inventory has been lost or stolen.
Spending Cycle
(PRAISE)
- Physical controls
- Recording
- Authorization
- Independent checks
- Segregation of duties
- Evaluate performance
• Independent checks
– Verify that the client periodically performs inventory c___ts
Spending Cycle
(PRAISE)
- Physical controls
- Recording
- Authorization
- Independent checks
- Segregation of duties
- Evaluate performance
• Independent checks
– Verify that the client periodically performs inventory counts
Spending Cycle
(PRAISE)
• Independent checks
– Ve___y that the client periodically performs inventory counts
Spending Cycle
(PRAISE)
• Independent checks
– Verify that the client periodically performs inventory counts
Spending Cycle
(PRAISE)
• Independent checks
– Verify that the client periodically performs in_____ry counts
Spending Cycle
(PRAISE)
• Independent checks
– Verify that the client periodically performs inventory counts
Spending Cycle
(PRAISE)
• Independent checks
– Verify that the client pe_____ally performs inventory counts and reconciles amounts on hand to inventory records
Spending Cycle
(PRAISE)
• Independent checks
– Verify that the client periodically performs inventory counts and reconciles amounts on hand to inventory records
Spending Cycle
(PRAISE)
• Independent checks
– Verify that the client periodically performs inventory counts and reconciles am____s on hand to inventory records
Spending Cycle
(PRAISE)
• Independent checks
– Verify that the client periodically performs inventory counts and reconciles amounts on hand to inventory records
Spending Cycle
(PRAISE)
• Independent checks
– Verify that the client periodically performs inventory counts and re____iles amounts on hand to inventory records
Spending Cycle
(PRAISE)
• Independent checks
– Verify that the client periodically performs inventory counts and reconciles amounts on hand to inventory records
Spending Cycle
(PRAISE)
• Independent checks
– Verify that the client periodically performs inventory counts and reconciles amounts on h__d to inventory records
Spending Cycle
(PRAISE)
• Independent checks
– Verify that the client periodically performs inventory counts and reconciles amounts on hand to inventory records
Spending Cycle
(PRAISE)
• Independent checks
– Verify that the client periodically performs inventory counts and reconciles amounts on hand to inventory re____s
so as to know when inventory has been lost or stolen.
Spending Cycle
(PRAISE)
• Independent checks
– Verify that the client periodically performs inventory counts and reconciles amounts on hand to inventory records
so as to know when inventory has been lost or stolen.
Spending Cycle
(PRAISE)
• Independent checks
– Verify that the client periodically performs inventory counts and reconciles amounts on hand to inventory records
so as to know when in____ory has been lost or stolen.
Spending Cycle
(PRAISE)
• Independent checks
– Verify that the client periodically performs inventory counts and reconciles amounts on hand to inventory records
so as to know when inventory has been lost or stolen.
Spending Cycle
(PRAISE)
• Independent checks
– Verify that the client periodically performs inventory counts and reconciles amounts on hand to inventory records
so as to know when inventory has been l__t or stolen.
Spending Cycle
(PRAISE)
• Independent checks
– Verify that the client periodically performs inventory counts and reconciles amounts on hand to inventory records
so as to know when inventory has been lost or stolen.
Spending Cycle
(PRAISE)
• Independent checks
– Verify that the client periodically performs inventory counts and reconciles amounts on hand to inventory records
so as to know when inventory has been lost or st__en.
Spending Cycle
(PRAISE)
• Independent checks
– Verify that the client periodically performs inventory counts and reconciles amounts on hand to inventory records
so as to know when inventory has been lost or stolen.
Spending Cycle
Examples of auditing procedures used to understand the internal control structure related to spending (PRAISE):
- Physical controls
- Recording
- Authorization
- Independent checks
- Segregation of duties
- Evaluate performance
• Independent checks
– Verify that the client periodically performs inventory counts and reconciles amounts on hand to inventory records so as to know when inventory has been lost or stolen.
• Segregation of duties
– Use inquiry and observation to determine that there is a separation of the functions of (1) authorization of purchases and payments, (2) recording of purchase orders and posting to the purchase journal, and (3) custody of inventory and checks for payment.
Spending Cycle
Examples of auditing procedures used to understand the internal control structure related to spending (PRAISE):
- Physical controls
- Recording
- Authorization
- Independent checks
- Segregation of duties
- Evaluate performance
• Independent checks
– Verify that the client periodically performs inventory counts and reconciles amounts on hand to inventory records so as to know when inventory has been lost or stolen.
• Segregation of duties
– Use inquiry and observation to determine that there is a separation of the functions of (1) authorization of purchases and payments, (2) recording of purchase orders and posting to the purchase journal, and (3) custody of inventory and checks for payment.
Spending Cycle
Examples of auditing procedures used to understand the internal control structure related to spending (PRAISE):
- Physical controls
- Recording
- Authorization
- Independent checks
- Segregation of duties
- Evaluate performance
• Segregation of duties
– Use inquiry and observation to determine that there is a separation of the functions of
(1) authorization of purchases and payments,
(2) recording of purchase orders and posting to the purchase journal, and
(3) custody of inventory and checks for payment.
Spending Cycle
Examples of auditing procedures used to understand the internal control structure related to spending (PRAISE):
- Physical controls
- Recording
- Authorization
- Independent checks
- Segregation of duties
- Evaluate performance
• Segregation of duties
– Use inquiry and observation to determine that there is a separation of the functions of
(1) authorization of purchases and payments,
(2) recording of purchase orders and posting to the purchase journal, and
(3) custody of inventory and checks for payment.
Spending Cycle
(PRAISE)
- Physical controls
- Recording
- Authorization
- Independent checks
- Segregation of duties
- Evaluate performance
• Segregation of duties
– Use i___iry and observation
Spending Cycle
(PRAISE)
- Physical controls
- Recording
- Authorization
- Independent checks
- Segregation of duties
- Evaluate performance
• Segregation of duties
– Use inquiry and observation
Spending Cycle
(PRAISE)
• Segregation of duties
– Use inquiry and ob_____tion
Spending Cycle
(PRAISE)
• Segregation of duties
– Use inquiry and observation
Spending Cycle
(PRAISE):
• Segregation of duties
– Use inquiry and observation to deter____ that there is a separation
Spending Cycle
(PRAISE):
• Segregation of duties
– Use inquiry and observation to determine that there is a separation
Spending Cycle
(PRAISE):
• Segregation of duties
– Use inquiry and observation to determine that there is a separation of the functions of
(1) auth_______ of purchases and payments,
Spending Cycle
(PRAISE):
• Segregation of duties
– Use inquiry and observation to determine that there is a separation of the functions of
(1) authorization of purchases and payments,
Spending Cycle
(PRAISE):
• Segregation of duties
– Use inquiry and observation to determine that there is a separation of the functions of
(1) authorization of purchases and payments,
(2) re____ing of purchase orders
Spending Cycle
(PRAISE):
• Segregation of duties
– Use inquiry and observation to determine that there is a separation of the functions of
(1) authorization of purchases and payments,
(2) recording of purchase orders
Spending Cycle
(PRAISE):
• Segregation of duties
– Use inquiry and observation to determine that there is a separation of the functions of
(1) authorization of purchases and payments,
(2) recording of purchase orders and p___ing to the purchase journal,
Spending Cycle
(PRAISE):
• Segregation of duties
– Use inquiry and observation to determine that there is a separation of the functions of
(1) authorization of purchases and payments,
(2) recording of purchase orders and posting to the purchase journal,
Spending Cycle
(PRAISE):
• Segregation of duties
– Use inquiry and observation to determine that there is a separation of the functions of
(1) authorization of purchases and payments,
(2) recording of purchase orders and posting to the purchase journal, and
(3) cu___dy of inventory and checks for payment.
Spending Cycle
(PRAISE):
• Segregation of duties
– Use inquiry and observation to determine that there is a separation of the functions of
(1) authorization of purchases and payments,
(2) recording of purchase orders and posting to the purchase journal, and
(3) custody of inventory and checks for payment.
Spending Cycle
(PRAISE):
• Segregation of duties
– Use inquiry and observation to determine that there is a separation of the functions of
(1) authorization of pu______s and payments,
(2) recording of purchase orders and posting to the purchase journal, and
(3) custody of inventory and checks for payment.
Spending Cycle
(PRAISE):
• Segregation of duties
– Use inquiry and observation to determine that there is a separation of the functions of
(1) authorization of purchases and payments,
(2) recording of purchase orders and posting to the purchase journal, and
(3) custody of inventory and checks for payment.
Spending Cycle
(PRAISE):
• Segregation of duties
– Use inquiry and observation to determine that there is a separation of the functions of
(1) authorization of purchases and pay____s,
(2) recording of purchase orders and posting to the purchase journal, and
(3) custody of inventory and checks for payment.
Spending Cycle
(PRAISE):
• Segregation of duties
– Use inquiry and observation to determine that there is a separation of the functions of
(1) authorization of purchases and payments,
(2) recording of purchase orders and posting to the purchase journal, and
(3) custody of inventory and checks for payment.
Spending Cycle
(PRAISE):
• Segregation of duties
– Use inquiry and observation to determine that there is a separation of the functions of
(1) authorization of purchases and payments,
(2) recording of purchase or___s and posting to the purchase journal, and
(3) custody of inventory and checks for payment.
Spending Cycle
(PRAISE):
• Segregation of duties
– Use inquiry and observation to determine that there is a separation of the functions of
(1) authorization of purchases and payments,
(2) recording of purchase orders and posting to the purchase journal, and
(3) custody of inventory and checks for payment.
Spending Cycle
(PRAISE):
• Segregation of duties
– Use inquiry and observation to determine that there is a separation of the functions of
(1) authorization of purchases and payments,
(2) recording of purchase orders and posting to the purchase jo____l, and
(3) custody of inventory and checks for payment.
Spending Cycle
(PRAISE):
• Segregation of duties
– Use inquiry and observation to determine that there is a separation of the functions of
(1) authorization of purchases and payments,
(2) recording of purchase orders and posting to the purchase journal, and
(3) custody of inventory and checks for payment.
Spending Cycle
(PRAISE):
• Segregation of duties
– Use inquiry and observation to determine that there is a separation of the functions of
(1) authorization of purchases and payments,
(2) recording of purchase orders and posting to the purchase journal, and
(3) custody of in______y and checks for payment.
Spending Cycle
(PRAISE):
• Segregation of duties
– Use inquiry and observation to determine that there is a separation of the functions of
(1) authorization of purchases and payments,
(2) recording of purchase orders and posting to the purchase journal, and
(3) custody of inventory and checks for payment.
Spending Cycle
(PRAISE):
• Segregation of duties
– Use inquiry and observation to determine that there is a separation of the functions of
(1) authorization of purchases and payments,
(2) recording of purchase orders and posting to the purchase journal, and
(3) custody of inventory and ch__ks for payment.
Spending Cycle
(PRAISE):
• Segregation of duties
– Use inquiry and observation to determine that there is a separation of the functions of
(1) authorization of purchases and payments,
(2) recording of purchase orders and posting to the purchase journal, and
(3) custody of inventory and checks for payment.
Spending Cycle
(PRAISE)
• Segregation of duties
– Use inquiry and observation to determine that there is a separation of the functions of
(1) authorization of purchases and payments,
(2) recording of purchase orders and posting to the purchase journal, and
(3) custody of inventory and checks for pa_____t.
Spending Cycle
(PRAISE)
• Segregation of duties
– Use inquiry and observation to determine that there is a separation of the functions of
(1) authorization of purchases and payments,
(2) recording of purchase orders and posting to the purchase journal, and
(3) custody of inventory and checks for payment.
Spending Cycle
(PRAISE):
• Seg_______ of duties
– Use inquiry and observation to determine that there is a separation of the functions of
(1) authorization of purchases and payments,
(2) recording of purchase orders and posting to the purchase journal, and
(3) custody of inventory and checks for payment.
Spending Cycle
(PRAISE):
• Segregation of duties
– Use inquiry and observation to determine that there is a separation of the functions of
(1) authorization of purchases and payments,
(2) recording of purchase orders and posting to the purchase journal, and
(3) custody of inventory and checks for payment.
Spending Cycle
Examples of auditing procedures used to understand the internal control structure related to spending (PRAISE):
- Physical controls
- Recording
- Authorization
- Independent checks
- Segregation of duties
- Evaluate performance
• Segregation of duties
– Use inquiry and observation to determine that there is a separation of the functions of
(1) authorization of purchases and payments,
(2) recording of purchase orders and posting to the purchase journal, and
(3) custody of inventory and checks for payment.
• Evaluate performance
– Determine if the client uses a standard costing system that generates variances, enabling them to identify actual cost numbers that may be incorrect.
Spending Cycle
Examples of auditing procedures used to understand the internal control structure related to spending (PRAISE):
- Physical controls
- Recording
- Authorization
- Independent checks
- Segregation of duties
- Evaluate performance
• Segregation of duties
– Use inquiry and observation to determine that there is a separation of the functions of
(1) authorization of purchases and payments,
(2) recording of purchase orders and posting to the purchase journal, and
(3) custody of inventory and checks for payment.
• Evaluate performance
– Determine if the client uses a standard costing system that generates variances, enabling them to identify actual cost numbers that may be incorrect.
Spending Cycle
Examples of auditing procedures used to understand the internal control structure related to spending (PRAISE):
- Physical controls
- Recording
- Authorization
- Independent checks
- Segregation of duties
- Evaluate performance
• Evaluate performance
– Determine if the client uses a standard costing system that generates variances, enabling them to identify actual cost numbers that may be incorrect.
Spending Cycle
Examples of auditing procedures used to understand the internal control structure related to spending (PRAISE):
- Physical controls
- Recording
- Authorization
- Independent checks
- Segregation of duties
- Evaluate performance
• Evaluate performance
– Determine if the client uses a standard costing system that generates variances, enabling them to identify actual cost numbers that may be incorrect.
Spending Cycle
(PRAISE)
- Physical controls
- Recording
- Authorization
- Independent checks
- Segregation of duties
- Evaluate performance
• Evaluate performance
– Determine if the client uses a sta_____ costing system that generates variances
Spending Cycle
(PRAISE)
- Physical controls
- Recording
- Authorization
- Independent checks
- Segregation of duties
- Evaluate performance
• Evaluate performance
– Determine if the client uses a standard costing system that generates variances,
Spending Cycle
(PRAISE)
• Evaluate performance
– Determine if the client uses a standard c___ing system that generates variances
Spending Cycle
(PRAISE)
• Evaluate performance
– Determine if the client uses a standard costing system that generates variances
Spending Cycle
(PRAISE)
• Evaluate performance
– Determine if the client uses a standard costing system that generates va_____es,
Spending Cycle
(PRAISE)
• Evaluate performance
– Determine if the client uses a standard costing system that generates variances,
Spending Cycle
(PRAISE)
• Evaluate performance
– Determine if the client uses a standard costing system that generates variances, enabling them to id____fy actual cost numbers that may be incorrect.
Spending Cycle
(PRAISE)
• Evaluate performance
– Determine if the client uses a standard costing system that generates variances, enabling them to identify actual cost numbers that may be incorrect.
Spending Cycle
(PRAISE)
• Evaluate performance
– Determine if the client uses a standard costing system that generates variances, enabling them to identify actual cost nu_____s that may be incorrect.
Spending Cycle
(PRAISE)
• Evaluate performance
– Determine if the client uses a standard costing system that generates variances, enabling them to identify actual cost numbers that may be incorrect.
Spending Cycle
(PRAISE)
• Evaluate performance
– Determine if the client uses a standard costing system that generates variances, enabling them to identify ac____ cost numbers that may be incorrect.
Spending Cycle
(PRAISE)
• Evaluate performance
– Determine if the client uses a standard costing system that generates variances, enabling them to identify actual cost numbers that may be incorrect.
Spending Cycle
(PRAISE)
• Evaluate performance
– Determine if the client uses a standard costing system that generates variances, enabling them to identify actual c__t numbers that may be incorrect.
Spending Cycle
(PRAISE)
• Evaluate performance
– Determine if the client uses a standard costing system that generates variances, enabling them to identify actual cost numbers that may be incorrect.
Spending Cycle
(PRAISE)
• Evaluate performance
– Determine if the client uses a standard costing system that generates variances, enabling them to identify actual cost numbers that may be inc_____t.
Spending Cycle
(PRAISE)
• Evaluate performance
– Determine if the client uses a standard costing system that generates variances, enabling them to identify actual cost numbers that may be incorrect.
Spending Cycle
(PRAISE)
• Eva_____ performance
– Determine if the client uses a standard costing system that generates variances, enabling them to identify actual cost numbers that may be incorrect.
Spending Cycle
(PRAISE)
• Evaluate performance
– Determine if the client uses a standard costing system that generates variances, enabling them to identify actual cost numbers that may be incorrect.
Spending Cycle
(PRAISE)
• Evaluate perf_______
– Determine if the client uses a standard costing system that generates variances, enabling them to identify actual cost numbers that may be incorrect.
Spending Cycle
(PRAISE)
• Evaluate performance
– Determine if the client uses a standard costing system that generates variances, enabling them to identify actual cost numbers that may be incorrect.
Spending Cycle
(Purchases / Accounts Payable / Cash Disbursements)
The auditor should look for specific applications of the different control activities to the spending cycle.
Commonly-tested examples of auditing procedures used to understand the internal control structure related to spending include (PRAISE):
• Physical controls
– Verify that all goods are received by the receiving department and returns are shipped by the shipping department.
• Recording
– Verify that receiving reports are prepared for all goods received and that debit memos are prepared for all goods that are returned.
• Authorization
– Select individual cancelled checks and vouch them to the purchase orders, receiving reports, vendor invoices, and payment vouchers.
• Independent checks
– Verify that the client periodically performs inventory counts and reconciles amounts on hand to inventory records so as to know when inventory has been lost or stolen.
• Segregation of duties
– Use inquiry and observation to determine that there is a separation of the functions of
(1) authorization of purchases and payments,
(2) recording of purchase orders and posting to the purchase journal, and
(3) custody of inventory and checks for payment.
• Evaluate performance
– Determine if the client uses a standard costing system that generates variances, enabling them to identify actual cost numbers that may be incorrect.
Spending Cycle
(Purchases / Accounts Payable / Cash Disbursements)
The auditor should look for specific applications of the different control activities to the spending cycle.
Commonly-tested examples of auditing procedures used to understand the internal control structure related to spending include (PRAISE):
• Physical controls
– Verify that all goods are received by the receiving department and returns are shipped by the shipping department.
• Recording
– Verify that receiving reports are prepared for all goods received and that debit memos are prepared for all goods that are returned.
• Authorization
– Select individual cancelled checks and vouch them to the purchase orders, receiving reports, vendor invoices, and payment vouchers.
• Independent checks
– Verify that the client periodically performs inventory counts and reconciles amounts on hand to inventory records so as to know when inventory has been lost or stolen.
• Segregation of duties
– Use inquiry and observation to determine that there is a separation of the functions of
(1) authorization of purchases and payments,
(2) recording of purchase orders and posting to the purchase journal, and
(3) custody of inventory and checks for payment.
• Evaluate performance
– Determine if the client uses a standard costing system that generates variances, enabling them to identify actual cost numbers that may be incorrect.
What Is a Canceled Check?
A canceled check is a check that has been paid or cleared by the bank it was drawn on after it has been deposited or cashed.
The check is “canceled” after it’s been used or paid so that the check cannot be used again.
What Is a Canceled Check?
A canceled check is a check that has been paid or cleared by the bank it was drawn on after it has been deposited or cashed.
The check is “canceled” after it’s been used or paid so that the check cannot be used again.
What Is a cancelled check?
A cancelled check is a check payment for which the stated amount of cash has been removed from the payer’s checking account.
Once the cash draw down is completed, the bank stamps the check as cancelled. Once a check is cancelled it can no longer be used as an authorization to remove additional funds from the account of the payer.
A cancelled check has passed through the entire set of payment activities, which include the following:
- Received by the payee
- Endorsed by the payee
- Deposited with the payee’s bank
- Paid by the drawee bank to the payee bank
- Cash is paid into the payee’s account by the payee bank
What Is a cancelled check?
A cancelled check is a check payment for which the stated amount of cash has been removed from the payer’s checking account.
Once the cash draw down is completed, the bank stamps the check as cancelled. Once a check is cancelled it can no longer be used as an authorization to remove additional funds from the account of the payer.
A cancelled check has passed through the entire set of payment activities, which include the following:
- Received by the payee
- Endorsed by the payee
- Deposited with the payee’s bank
- Paid by the drawee bank to the payee bank
- Cash is paid into the payee’s account by the payee bank
Returns and Allowances
(debit memorandum)
When a purchaser receives defective, damaged, or otherwise undesirable merchandise, the purchaser prepares a debit memorandum that identifies the items in question and the cost of those items.
The purchaser uses the debit memorandum to inform the seller about the return and to prepare a journal entry that
decreases (debits) accounts payable
and
increases (credits) an account named purchases returns and allowances, which is a contra‐expense account.
Contra‐expense accounts normally have credit balances. On the income statement, the purchases returns and allowances account is subtracted from purchases.
Returns and Allowances
(debit memorandum)
When a purchaser receives defective, damaged, or otherwise undesirable merchandise, the purchaser prepares a debit memorandum that identifies the items in question and the cost of those items.
The purchaser uses the debit memorandum to inform the seller about the return and to prepare a journal entry that
decreases (debits) accounts payable
and
increases (credits) an account named purchases returns and allowances, which is a contra‐expense account.
Contra‐expense accounts normally have credit balances. On the income statement, the purchases returns and allowances account is subtracted from purchases.
Returns and Allowances
(debit memorandum)
Example:
If Music World discovers $100 worth of defective merchandise in the shipment from Music Suppliers, Inc., Music World prepares a debit memorandum, returns the merchandise, and makes a journal entry that decreases (debits) accounts payable for $100 and that increases (credits) purchases returns and allowances for $100.
General Journal Date Account Title and Description Debit Credit \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
2013
06/15 Account Payable $100
Purchase Returns $100
and Allowances
DM #1072, Invoice #15932
For reference purposes, the journal entry’s description may include the debit memorandum number and the seller’s invoice number.
Returns and Allowances
(debit memorandum)
Example:
If Music World discovers $100 worth of defective merchandise in the shipment from Music Suppliers, Inc., Music World prepares a debit memorandum, returns the merchandise, and makes a journal entry that decreases (debits) accounts payable for $100 and that increases (credits) purchases returns and allowances for $100.
General Journal Date Account Title and Description Debit Credit \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
2013
06/15 Account Payable $100
Purchase Returns $100
and Allowances
DM #1072, Invoice #15932
For reference purposes, the journal entry’s description may include the debit memorandum number and the seller’s invoice number.
Returns and Allowances
(debit memorandum)
When a purchaser receives defective, damaged, or otherwise undesirable merchandise, the purchaser prepares a debit memorandum that identifies the items in question and the cost of those items.
The purchaser uses the debit memorandum to inform the seller about the return and to prepare a journal entry that
decreases (debits) accounts payable
and
increases (credits) an account named purchases returns and allowances, which is a contra‐expense account.
Contra‐expense accounts normally have credit balances. On the income statement, the purchases returns and allowances account is subtracted from purchases.
Returns and Allowances
(debit memorandum)
Example:
If Music World discovers $100 worth of defective merchandise in the shipment from Music Suppliers, Inc., Music World prepares a debit memorandum, returns the merchandise, and makes a journal entry that decreases (debits) accounts payable for $100 and that increases (credits) purchases returns and allowances for $100.
General Journal Date Account Title and Description Debit Credit \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
2013
06/15 Account Payable $100
Purchase Returns $100
and Allowances
DM #1072, Invoice #15932
For reference purposes, the journal entry’s description may include the debit memorandum number and the seller’s invoice number.
Returns and Allowances
(debit memorandum)
When a purchaser receives defective, damaged, or otherwise undesirable merchandise, the purchaser prepares a debit memorandum that identifies the items in question and the cost of those items.
The purchaser uses the debit memorandum to inform the seller about the return and to prepare a journal entry that
decreases (debits) accounts payable
and
increases (credits) an account named purchases returns and allowances, which is a contra‐expense account.
Contra‐expense accounts normally have credit balances. On the income statement, the purchases returns and allowances account is subtracted from purchases.
Returns and Allowances
(debit memorandum)
Example:
If Music World discovers $100 worth of defective merchandise in the shipment from Music Suppliers, Inc., Music World prepares a debit memorandum, returns the merchandise, and makes a journal entry that decreases (debits) accounts payable for $100 and that increases (credits) purchases returns and allowances for $100.
General Journal Date Account Title and Description Debit Credit \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
2013
06/15 Account Payable $100
Purchase Returns $100
and Allowances
DM #1072, Invoice #15932
For reference purposes, the journal entry’s description may include the debit memorandum number and the seller’s invoice number.
Returns and Allowances
(from the seller side)
Why do we have a sales returns and allowances account?
This question can be followed up with:
Why don’t we just debit Sales when there is a return?
Why do we have to use a separate account?
Sales Returns and Allowances is a contra account to Sales; thus, it has a normal debit balance.
This account contains the dollar amount by which customers accounts have been reduced for goods returned to us or allowances made for damage, defects, etc.
Since returns and allowances are not planned, and ideally we would never have any, we want to know why we have them.
If we debit the sales account for them, the dollar amounts are not readily available when we prepare the income statement.
The best way to know how much we have lost in sales due to returns and allowances is to record that information in a separate account.
These data are important to know in managing a business. We want to keep the amount of returns and allowances to a minimum in order to achieve efficiency and customer satisfaction.
Returns and Allowances
(from the seller side)
Why do we have a sales returns and allowances account?
This question can be followed up with:
Why don’t we just debit Sales when there is a return?
Why do we have to use a separate account?
Sales Returns and Allowances is a contra account to Sales; thus, it has a normal debit balance.
This account contains the dollar amount by which customers accounts have been reduced for goods returned to us or allowances made for damage, defects, etc.
Since returns and allowances are not planned, and ideally we would never have any, we want to know why we have them.
If we debit the sales account for them, the dollar amounts are not readily available when we prepare the income statement.
The best way to know how much we have lost in sales due to returns and allowances is to record that information in a separate account.
These data are important to know in managing a business. We want to keep the amount of returns and allowances to a minimum in order to achieve efficiency and customer satisfaction.
A Debit Memo
What is a debit memo?
A debit memo is usually a type of correspondence device. It is a piece of paper issued by the buyer to inform the seller how much the buyer plans to reduce its accounts payable balance when making a return or asking for an allowance.
The buyer may use this form to record an entry, but many companies wait until they receive a credit memo from the seller economic sore recording the transaction, just in case the seller disagrees and the buyer later has to change the dollar amount of the previous entry.
A Debit Memo
What is a debit memo?
A debit memo is usually a type of correspondence device. It is a piece of paper issued by the buyer to inform the seller how much the buyer plans to reduce its accounts payable balance when making a return or asking for an allowance.
The buyer may use this form to record an entry, but many companies wait until they receive a credit memo from the seller economic sore recording the transaction, just in case the seller disagrees and the buyer later has to change the dollar amount of the previous entry.
Standard Cost vs Actual Cost
- Meaning
Standard Cost:
Standard cost refers to the estimated costs of a product pertaining to material, labor, and other overhead costs.
Actual Cost:
The actual cost is the realized cost and is not based on the estimates of the same.
- Accounting Treatment
Standard Cost:
Standard Cost cannot be included in the financial statements of a company
Actual Cost:
Actual Costs are shown as an expense in the financial statement
- Recording the Costs
Standard Cost:
These costs are recorded at the beginning of the year when the budget is planned
Actual Cost:
These costs are incurred and realized during the entire year and recorded in the same manner.
- Accuracy of Data Capture
Standard Cost:
In case of any errors in data capture, the inventory valuation does not change but shown as Variance
Actual Cost:
In case of errors in data capture, would lead to distorted costs and actual inventory valuation
- Visibility of Issues
Standard Cost:
Method of cost using standard costs provides better visibility and chances to improve the performance, as the variances can be useful to identify the issues in the production and manufacturing process
Actual Cost:
In the method of costing using Actual costs, certain issues can be hidden by capitalizing them with the cost of the inventory
Standard Cost vs Actual Cost
- Meaning
Standard Cost:
Standard cost refers to the estimated costs of a product pertaining to material, labor, and other overhead costs.
Actual Cost:
The actual cost is the realized cost and is not based on the estimates of the same.
- Accounting Treatment
Standard Cost:
Standard Cost cannot be included in the financial statements of a company
Actual Cost:
Actual Costs are shown as an expense in the financial statement
- Recording the Costs
Standard Cost:
These costs are recorded at the beginning of the year when the budget is planned
Actual Cost:
These costs are incurred and realized during the entire year and recorded in the same manner.
- Accuracy of Data Capture
Standard Cost:
In case of any errors in data capture, the inventory valuation does not change but shown as Variance
Actual Cost:
In case of errors in data capture, would lead to distorted costs and actual inventory valuation
- Visibility of Issues
Standard Cost:
Method of cost using standard costs provides better visibility and chances to improve the performance, as the variances can be useful to identify the issues in the production and manufacturing process
Actual Cost:
In the method of costing using Actual costs, certain issues can be hidden by capitalizing them with the cost of the inventory
Standard Cost vs Actual Cost
Conclusion –
Standard Costing method requires to work on them every year or for every period the management decides as.
Also, the variance that is observed after the actual costs needs to be monitored and check the accuracy of the standards decided.
On the other hand, the actual costs need not be decided on an annual or periodic basis.
The changes in the costs are decided on an ongoing basis.
The method of costing to apply for the inventory entirely depends on the management and its style.
While it might be recommended by many that actual costing is better when compared as it is more liberating, offers more options, readily available information and ultimately more flexibility, but there also be some thoughts around standard costing practices being more usable and better.
On the basis of the standard costs, it becomes easier to attract bank loans and also make plans well in advance for the unit based on the estimated costs.
Standard Cost vs Actual Cost
Conclusion –
Standard Costing method requires to work on them every year or for every period the management decides as.
Also, the variance that is observed after the actual costs needs to be monitored and check the accuracy of the standards decided.
On the other hand, the actual costs need not be decided on an annual or periodic basis.
The changes in the costs are decided on an ongoing basis.
The method of costing to apply for the inventory entirely depends on the management and its style.
While it might be recommended by many that actual costing is better when compared as it is more liberating, offers more options, readily available information and ultimately more flexibility, but there also be some thoughts around standard costing practices being more usable and better.
On the basis of the standard costs, it becomes easier to attract bank loans and also make plans well in advance for the unit based on the estimated costs.
Spending Cycle
(Purchases / Accounts Payable / Cash Disbursements)
Just as in the case of the revenue cycle, the auditor is primarily concerned with the relationship of the various con____ activities to the various management assertions.
Spending Cycle
(Purchases / Accounts Payable / Cash Disbursements)
Just as in the case of the revenue cycle, the auditor is primarily concerned with the relationship of the various control activities to the various management assertions.
Spending Cycle
Just as in the case of the revenue cycle, the auditor is primarily concerned with the relationship of the various control ac____ties to the various management assertions.
Spending Cycle
Just as in the case of the revenue cycle, the auditor is primarily concerned with the relationship of the various control activities to the various management assertions.
Spending Cycle
Just as in the case of the revenue cycle, the auditor is primarily concerned with the re______hip of the various control activities to the various management assertions.
Spending Cycle
Just as in the case of the revenue cycle, the auditor is primarily concerned with the relationship of the various control activities to the various management assertions.
Spending Cycle
Just as in the case of the revenue cycle, the auditor is primarily concerned with the relationship of the various control activities to the various ma________ assertions.
Spending Cycle
Just as in the case of the revenue cycle, the auditor is primarily concerned with the relationship of the various control activities to the various management assertions.
Spending Cycle
Just as in the case of the revenue cycle, the auditor is primarily concerned with the relationship of the various control activities to the various management as____ions.
Spending Cycle
Just as in the case of the revenue cycle, the auditor is primarily concerned with the relationship of the various control activities to the various management assertions.
Spending Cycle
Just as in the case of the revenue cycle, the auditor is primarily concerned with the relationship of the various control activities to the various management assertions.
Similarly to the revenue cycle, tracing through the sys___ in the normal order (from source documents to postings in books and records) is an attempt to verify the completeness of the records,
Spending Cycle
Just as in the case of the revenue cycle, the auditor is primarily concerned with the relationship of the various control activities to the various management assertions.
Similarly to the revenue cycle, tracing through the system in the normal order (from source documents to postings in books and records) is an attempt to verify the completeness of the records,
Spending Cycle
Similarly to the revenue cycle, t___ing through the system in the normal order (from source documents to postings in books and records) is an attempt to verify the completeness of the records,
Spending Cycle
Similarly to the revenue cycle, tracing through the system in the normal order (from source documents to postings in books and records) is an attempt to verify the completeness of the records,
Spending Cycle
Similarly to the revenue cycle, tracing through the system in the normal order (from so___e documents to postings in books and records) is an attempt to verify the completeness of the records,
Spending Cycle
Similarly to the revenue cycle, tracing through the system in the normal order (from source documents to postings in books and records) is an attempt to verify the completeness of the records,
Spending Cycle
Similarly to the revenue cycle, tracing through the system in the normal order (from source documents to p___ings in books and records) is an attempt to verify the completeness of the records,
Spending Cycle
Similarly to the revenue cycle, tracing through the system in the normal order (from source documents to postings in books and records) is an attempt to verify the completeness of the records,
Spending Cycle
Similarly to the revenue cycle, tracing through the system in the normal order (from source documents to postings in books and records) is an attempt to verify the com_____ess of the records,
Spending Cycle
Similarly to the revenue cycle, tracing through the system in the normal order (from source documents to postings in books and records) is an attempt to verify the completeness of the records,
Spending Cycle
Similarly to the revenue cycle, tracing through the system in the normal order (from source documents to postings in books and records) is an attempt to verify the completeness of the records,
while vouching in re_____ order (from books and records back to source documents) is an attempt to verify the existence or occurrence of all the transactions that are reflected in the records.
Spending Cycle
Similarly to the revenue cycle, tracing through the system in the normal order (from source documents to postings in books and records) is an attempt to verify the completeness of the records,
while vouching in reverse order (from books and records back to source documents) is an attempt to verify the existence or occurrence of all the transactions that are reflected in the records.
Spending Cycle
Similarly to the revenue cycle, tracing through the system in the normal order (from source documents to postings in books and records) is an attempt to verify the completeness of the records,
while v____ing in reverse order (from books and records back to source documents) is an attempt to verify the existence or occurrence of all the transactions that are reflected in the records.
Spending Cycle
Similarly to the revenue cycle, tracing through the system in the normal order (from source documents to postings in books and records) is an attempt to verify the completeness of the records,
while vouching in reverse order (from books and records back to source documents) is an attempt to verify the existence or occurrence of all the transactions that are reflected in the records.
Spending Cycle
while vouching in reverse order (from b___s and records back to source documents) is an attempt to verify the existence or occurrence of all the transactions that are reflected in the records.
Spending Cycle
while vouching in reverse order (from books and records back to source documents) is an attempt to verify the existence or occurrence of all the transactions that are reflected in the records.
Spending Cycle
while vouching in reverse order (from books and records b__k to source documents) is an attempt to verify the existence or occurrence of all the transactions that are reflected in the records.
Spending Cycle
while vouching in reverse order (from books and records back to source documents) is an attempt to verify the existence or occurrence of all the transactions that are reflected in the records.
Spending Cycle
while vouching in reverse order (from books and records back to so___e documents) is an attempt to verify the existence or occurrence of all the transactions that are reflected in the records.
Spending Cycle
while vouching in reverse order (from books and records back to source documents) is an attempt to verify the existence or occurrence of all the transactions that are reflected in the records.
Spending Cycle
while vouching in reverse order (from books and records back to source documents) is an attempt to v____y the existence or occurrence of all the transactions that are reflected in the records.
Spending Cycle
while vouching in reverse order (from books and records back to source documents) is an attempt to verify the existence or occurrence of all the transactions that are reflected in the records.
Spending Cycle
while vouching in reverse order (from books and records back to source documents) is an attempt to verify the exis______ or occurrence of all the transactions that are reflected in the records.
Spending Cycle
while vouching in reverse order (from books and records back to source documents) is an attempt to verify the existence or occurrence of all the transactions that are reflected in the records.
Spending Cycle
while vouching in reverse order (from books and records back to source documents) is an attempt to verify the existence or occ______ of all the transactions that are reflected in the records.
Spending Cycle
while vouching in reverse order (from books and records back to source documents) is an attempt to verify the existence or occurrence of all the transactions that are reflected in the records.
Spending Cycle
while vouching in reverse order (from books and records back to source documents) is an attempt to verify the existence or occurrence of a__ the transactions that are reflected in the records.
Spending Cycle
while vouching in reverse order (from books and records back to source documents) is an attempt to verify the existence or occurrence of all the transactions that are reflected in the records.
Spending Cycle
while vouching in reverse order (from books and records back to source documents) is an attempt to verify the existence or occurrence of all the tran______s that are reflected in the records.
Spending Cycle
while vouching in reverse order (from books and records back to source documents) is an attempt to verify the existence or occurrence of all the transactions that are reflected in the records.
Spending Cycle
while vouching in reverse order (from books and records back to source documents) is an attempt to verify the existence or occurrence of all the transactions that are re_____ed in the records.
Spending Cycle
while vouching in reverse order (from books and records back to source documents) is an attempt to verify the existence or occurrence of all the transactions that are reflected in the records.
Spending Cycle
Just as in the case of the revenue cycle, the auditor is pri___ily concerned with the relationship of the various control activities to the various management assertions.
Similarly to the revenue cycle, tracing through the system in the normal order (from source documents to postings in books and records) is an attempt to verify the completeness of the records,
while vouching in reverse order (from books and records back to source documents) is an attempt to verify the existence or occurrence of all the transactions that are reflected in the records.
Spending Cycle
Just as in the case of the revenue cycle, the auditor is primarily concerned with the relationship of the various control activities to the various management assertions.
Similarly to the revenue cycle, tracing through the system in the normal order (from source documents to postings in books and records) is an attempt to verify the completeness of the records,
while vouching in reverse order (from books and records back to source documents) is an attempt to verify the existence or occurrence of all the transactions that are reflected in the records.
Spending Cycle
Just as in the case of the revenue cycle, the auditor is primarily concerned with the relationship of the various control activities to the various management assertions.
Similarly to the revenue cycle, tracing through the system in the normal order (from source documents to postings in books and records) is an attempt to verify the co________ss of the records,
while vouching in reverse order (from books and records back to source documents) is an attempt to verify the existence or occurrence of all the transactions that are reflected in the records.
Spending Cycle
Just as in the case of the revenue cycle, the auditor is primarily concerned with the relationship of the various control activities to the various management assertions.
Similarly to the revenue cycle, tracing through the system in the normal order (from source documents to postings in books and records) is an attempt to verify the completeness of the records,
while vouching in reverse order (from books and records back to source documents) is an attempt to verify the existence or occurrence of all the transactions that are reflected in the records.
Spending Cycle
Just as in the case of the revenue cycle, the auditor is primarily concerned with the relationship of the various control activities to the various management assertions.
Similarly to the revenue cycle, tracing through the system in the normal order (from source documents to postings in books and records) is an attempt to verify the completeness of the records,
while vouching in reverse order (from books and records back to source documents) is an attempt to verify the e________e or occurrence of all the transactions that are reflected in the records.
Spending Cycle
Just as in the case of the revenue cycle, the auditor is primarily concerned with the relationship of the various control activities to the various management assertions.
Similarly to the revenue cycle, tracing through the system in the normal order (from source documents to postings in books and records) is an attempt to verify the completeness of the records,
while vouching in reverse order (from books and records back to source documents) is an attempt to verify the existence or occurrence of all the transactions that are reflected in the records.
Spending Cycle
Just as in the case of the revenue cycle, the auditor is primarily concerned with the relationship of the various control activities to the various management assertions.
Similarly to the revenue cycle, tracing through the system in the normal order (from source documents to postings in books and records) is an attempt to verify the completeness of the records,
while vouching in reverse order (from books and records back to source documents) is an attempt to verify the existence or oc________e of all the transactions that are reflected in the records.
Spending Cycle
Just as in the case of the revenue cycle, the auditor is primarily concerned with the relationship of the various control activities to the various management assertions.
Similarly to the revenue cycle, tracing through the system in the normal order (from source documents to postings in books and records) is an attempt to verify the completeness of the records,
while vouching in reverse order (from books and records back to source documents) is an attempt to verify the existence or occurrence of all the transactions that are reflected in the records.
Segregation of Duties in the Purchases and Spending Cycle
For proper segr______ of duties, authorization of transactions, the recording function, and custody of assets should be kept separate.
Segregation of Duties in the Purchases and Spending Cycle
For proper segregation of duties, authorization of transactions, the recording function, and custody of assets should be kept separate.
Segregation of Duties in the Purchases and Spending Cycle
For proper segregation of d___es, authorization of transactions, the recording function, and custody of assets should be kept separate.
Segregation of Duties in the Purchases and Spending Cycle
For proper segregation of duties, authorization of transactions, the recording function, and custody of assets should be kept separate.
Segregation of Duties in the Purchases and Spending Cycle
For proper segregation of duties, auth_______ of transactions, the recording function, and custody of assets should be kept separate.
Segregation of Duties in the Purchases and Spending Cycle
For proper segregation of duties, authorization of transactions, the recording function, and custody of assets should be kept separate.
Segregation of Duties in the Purchases and Spending Cycle
For proper segregation of duties, authorization of transactions, the re____ing function, and custody of assets should be kept separate.
Segregation of Duties in the Purchases and Spending Cycle
For proper segregation of duties, authorization of transactions, the recording function, and custody of assets should be kept separate.
Segregation of Duties in the Purchases and Spending Cycle
For proper segregation of duties, authorization of transactions, the recording function, and cu___dy of assets should be kept separate.
Segregation of Duties in the Purchases and Spending Cycle
For proper segregation of duties, authorization of transactions, the recording function, and custody of assets should be kept separate.
Segregation of Duties in the Purchases and Spending Cycle
For proper segregation of duties, authorization of transactions, the recording function, and custody of assets should be kept se____te.
Segregation of Duties in the Purchases and Spending Cycle
For proper segregation of duties, authorization of transactions, the recording function, and custody of assets should be kept separate.
Segregation of Duties in the Purchases and Spending Cycle
For proper segregation of duties, authorization of transactions, the recording function, and custody of assets should be kept separate.
• The fu______s of authorizing purchases, receiving goods purchased, and recording the purchase should be segregated.
Segregation of Duties in the Purchases and Spending Cycle
For proper segregation of duties, authorization of transactions, the recording function, and custody of assets should be kept separate.
• The functions of authorizing purchases, receiving goods purchased, and recording the purchase should be segregated.
Segregation of Duties in the Purchases and Spending Cycle
For proper segregation of duties, authorization of transactions, the recording function, and custody of assets should be kept separate.
• The functions of authorizing p_______es, receiving goods purchased, and recording the purchase should be segregated.
Segregation of Duties in the Purchases and Spending Cycle
For proper segregation of duties, authorization of transactions, the recording function, and custody of assets should be kept separate.
• The functions of authorizing purchases, receiving goods purchased, and recording the purchase should be segregated.
Segregation of Duties in the Purchases and Spending Cycle
• The functions of authorizing purchases, receiving g__ds purchased, and recording the purchase should be segregated.
Segregation of Duties in the Purchases and Spending Cycle
• The functions of authorizing purchases, receiving goods purchased, and recording the purchase should be segregated.
Segregation of Duties in the Purchases and Spending Cycle
• The functions of authorizing purchases, re____ing goods purchased, and recording the purchase should be segregated.
Segregation of Duties in the Purchases and Spending Cycle
• The functions of authorizing purchases, receiving goods purchased, and recording the purchase should be segregated.
Segregation of Duties in the Purchases and Spending Cycle
• The functions of authorizing purchases, receiving goods purchased, and re____ing the purchase should be segregated.
Segregation of Duties in the Purchases and Spending Cycle
• The functions of authorizing purchases, receiving goods purchased, and recording the purchase should be segregated.
Segregation of Duties in the Purchases and Spending Cycle
• The functions of authorizing purchases, receiving goods purchased, and recording the purchase should be seg______d.
Segregation of Duties in the Purchases and Spending Cycle
• The functions of authorizing purchases, receiving goods purchased, and recording the purchase should be segregated.
Segregation of Duties in the Purchases and Spending Cycle
• The c__h functions should be segregated.
Segregation of Duties in the Purchases and Spending Cycle
• The cash functions should be segregated.
Segregation of Duties in the Purchases and Spending Cycle
• The cash functions should be segregated.
Authorizing pa_____t for purchases, recording payments, access to checks, and reconciliation of the bank account should be segregated.
Segregation of Duties in the Purchases and Spending Cycle
• The cash functions should be segregated.
Authorizing payment for purchases, recording payments, access to checks, and reconciliation of the bank account should be segregated.
Segregation of Duties in the Purchases and Spending Cycle
• The cash functions should be segregated.
Authorizing payment for purchases, recording pay____s, access to checks, and reconciliation of the bank account should be segregated.
Segregation of Duties in the Purchases and Spending Cycle
• The cash functions should be segregated.
Authorizing payment for purchases, recording payments, access to checks, and reconciliation of the bank account should be segregated.
Segregation of Duties in the Purchases and Spending Cycle
• The cash functions should be segregated.
Authorizing payment for purchases, recording payments, ac____s to checks, and reconciliation of the bank account should be segregated.
Segregation of Duties in the Purchases and Spending Cycle
• The cash functions should be segregated.
Authorizing payment for purchases, recording payments, access to checks, and reconciliation of the bank account should be segregated.
Segregation of Duties in the Purchases and Spending Cycle
• The cash functions should be segregated.
Authorizing payment for purchases, recording payments, access to ch___s, and reconciliation of the bank account should be segregated.
Segregation of Duties in the Purchases and Spending Cycle
• The cash functions should be segregated.
Authorizing payment for purchases, recording payments, access to checks, and reconciliation of the bank account should be segregated.
Segregation of Duties in the Purchases and Spending Cycle
• The cash functions should be segregated.
Authorizing payment for purchases, recording payments, access to checks, and reco______n of the bank account should be segregated.
Segregation of Duties in the Purchases and Spending Cycle
• The cash functions should be segregated.
Authorizing payment for purchases, recording payments, access to checks, and reconciliation of the bank account should be segregated.
Segregation of Duties in the Purchases and Spending Cycle
• The cash functions should be segregated.
Authorizing payment for purchases, recording payments, access to checks, and reconciliation of the b___ account should be segregated.
Segregation of Duties in the Purchases and Spending Cycle
• The cash functions should be segregated.
Authorizing payment for purchases, recording payments, access to checks, and reconciliation of the bank account should be segregated.
Segregation of Duties in the Purchases and Spending Cycle
• The cash functions should be segregated.
Authorizing payment for purchases, recording payments, access to checks, and reconciliation of the bank acc____t should be segregated.
Segregation of Duties in the Purchases and Spending Cycle
• The cash functions should be segregated.
Authorizing payment for purchases, recording payments, access to checks, and reconciliation of the bank account should be segregated.
Segregation of Duties in the Purchases and Spending Cycle
• The cash functions should be segregated.
Aut_____ing payment for purchases, recording payments, access to checks, and reconciliation of the bank account should be segregated.
Segregation of Duties in the Purchases and Spending Cycle
• The cash functions should be segregated.
Authorizing payment for purchases, recording payments, access to checks, and reconciliation of the bank account should be segregated.
Segregation of Duties in the Purchases and Spending Cycle
• Individuals with authority to ap______ vouchers for payment should not have access to unused purchase orders.
Segregation of Duties in the Purchases and Spending Cycle
• Individuals with authority to approve vouchers for payment should not have access to unused purchase orders.
Segregation of Duties in the Purchases and Spending Cycle
• Individuals with authority to approve vo_____rs for payment should not have access to unused purchase orders.
Segregation of Duties in the Purchases and Spending Cycle
• Individuals with authority to approve vouchers for payment should not have access to unused purchase orders.
Segregation of Duties in the Purchases and Spending Cycle
• Individuals with authority to approve vouchers for pay____ should not have access to unused purchase orders.
Segregation of Duties in the Purchases and Spending Cycle
• Individuals with authority to approve vouchers for payment should not have access to unused purchase orders.
Segregation of Duties in the Purchases and Spending Cycle
• Individuals with authority to approve vouchers for payment should not have access to un__ed purchase orders.
Segregation of Duties in the Purchases and Spending Cycle
• Individuals with authority to approve vouchers for payment should not have access to unused purchase orders.
Segregation of Duties in the Purchases and Spending Cycle
• Individuals with authority to approve vouchers for payment should n__ have access to unused purchase orders.
Segregation of Duties in the Purchases and Spending Cycle
• Individuals with authority to approve vouchers for payment should not have access to unused purchase orders.
Segregation of Duties in the Purchases and Spending Cycle
• Individuals with authority to approve vouchers for payment should not have access to unused purchase or___s.
Segregation of Duties in the Purchases and Spending Cycle
• Individuals with authority to approve vouchers for payment should not have access to unused purchase orders.
Segregation of Duties in the Purchases and Spending Cycle
• Individuals with au_____ty to approve vouchers for payment should not have access to unused purchase orders.
Segregation of Duties in the Purchases and Spending Cycle
• Individuals with authority to approve vouchers for payment should not have access to unused purchase orders.
Segregation of Duties in the Purchases and Spending Cycle
For proper segregation of duties, authorization of transactions, the recording function, and custody of assets should be kept separate.
- The functions of au______ing purchases, receiving goods purchased, and recording the purchase should be segregated.
- The c__h functions should be segregated. Authorizing payment for purchases, recording payments, access to checks, and reconciliation of the bank account should be segregated.
- Individuals with au_____ty to approve vouchers for payment should not have access to unused purchase orders.
Segregation of Duties in the Purchases and Spending Cycle
For proper segregation of duties, authorization of transactions, the recording function, and custody of assets should be kept separate.
- The functions of authorizing purchases, receiving goods purchased, and recording the purchase should be segregated.
- The cash functions should be segregated. Authorizing payment for purchases, recording payments, access to checks, and reconciliation of the bank account should be segregated.
- Individuals with authority to approve vouchers for payment should not have access to unused purchase orders.
Segregation of Duties in the Purchases and Spending Cycle
For proper segregation of duties, authorization of transactions, the recording function, and custody of assets should be kept separate.
- The functions of authorizing purchases, receiving goods purchased, and recording the purchase should be segregated.
- The cash functions should be segregated. Authorizing payment for purchases, recording payments, access to checks, and reconciliation of the bank account should be segregated.
- Individuals with authority to approve vouchers for payment should not have access to unused purchase orders.
Segregation of Duties in the Purchases and Spending Cycle
For proper segregation of duties, authorization of transactions, the recording function, and custody of assets should be kept separate.
- The functions of authorizing purchases, receiving goods purchased, and recording the purchase should be segregated.
- The cash functions should be segregated. Authorizing payment for purchases, recording payments, access to checks, and reconciliation of the bank account should be segregated.
- Individuals with authority to approve vouchers for payment should not have access to unused purchase orders.
The auditor should look for specific ____________ of the different control activities to the spending cycle.
The auditor should look for specific applications of the different control activities to the spending cycle.
The auditor should look for specific applications of the different ________ activities to the spending cycle.
The auditor should look for specific applications of the different control activities to the spending cycle.
The auditor should look for specific applications of the different control _________ to the spending cycle.
The auditor should look for specific applications of the different control activities to the spending cycle.
The auditor should look for specific applications of the different control activities to the _________ cycle.
The auditor should look for specific applications of the different control activities to the spending cycle.
The _______ should look for specific applications of the different control activities to the spending cycle.
The auditor should look for specific applications of the different control activities to the spending cycle.
What the auditor should look for in different control activities to the spending cycle?
The auditor should look for
specific applications
of the different control activities to the spending cycle.
What are the examples of auditing procedures used to understand the internal control structure related to spending?
(PRAISE)
Commonly-tested examples of auditing procedures used to understand the internal control structure related to spending (PRAISE):
- Physical controls
- Recording
- Authorization
- Independent checks
- Segregation of duties
- Evaluate performance
What are the examples of auditing procedures used to understand the internal control structure related to spending?
(PRAISE) • P\_\_\_\_\_\_\_ c\_\_\_\_\_\_\_ • Recording • Authorization • Independent checks • Segregation of duties • Evaluate performance
What are the examples of auditing procedures used to understand the internal control structure related to spending?
(PRAISE) • Physical controls • Recording • Authorization • Independent checks • Segregation of duties • Evaluate performance
What are the examples of auditing procedures used to understand the internal control structure related to spending?
(PRAISE) • Physical controls • R\_\_\_\_\_\_\_\_ • Authorization • Independent checks • Segregation of duties • Evaluate performance
What are the examples of auditing procedures used to understand the internal control structure related to spending?
(PRAISE) • Physical controls • Recording • Authorization • Independent checks • Segregation of duties • Evaluate performance
What are the examples of auditing procedures used to understand the internal control structure related to spending?
(PRAISE) • Physical controls • Recording • A\_\_\_\_\_\_\_\_\_\_\_ • Independent checks • Segregation of duties • Evaluate performance
What are the examples of auditing procedures used to understand the internal control structure related to spending?
(PRAISE) • Physical controls • Recording • Authorization • Independent checks • Segregation of duties • Evaluate performance
What are the examples of auditing procedures used to understand the internal control structure related to spending?
(PRAISE) • Physical controls • Recording • Authorization • I\_\_\_\_\_\_\_\_\_ c\_\_\_\_\_\_ • Segregation of duties • Evaluate performance
What are the examples of auditing procedures used to understand the internal control structure related to spending?
(PRAISE) • Physical controls • Recording • Authorization • Independent checks • Segregation of duties • Evaluate performance
What are the examples of auditing procedures used to understand the internal control structure related to spending?
(PRAISE) • Physical controls • Recording • Authorization • Independent checks • S\_\_\_\_\_\_\_\_\_ of d\_\_\_\_\_ • Evaluate performance
What are the examples of auditing procedures used to understand the internal control structure related to spending?
(PRAISE) • Physical controls • Recording • Authorization • Independent checks • Segregation of duties • Evaluate performance
What are the examples of auditing procedures used to understand the internal control structure related to spending?
(PRAISE) • Physical controls • Recording • Authorization • Independent checks • Segregation of duties • E\_\_\_\_\_\_\_\_ p\_\_\_\_\_\_\_\_\_\_\_
What are the examples of auditing procedures used to understand the internal control structure related to spending?
(PRAISE) • Physical controls • Recording • Authorization • Independent checks • Segregation of duties • Evaluate performance
What are the examples of auditing procedures used to understand the internal control structure related to spending?
(PRAISE) • P\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ • Recording • Authorization • Independent checks • Segregation of duties • Evaluate performance
What are the examples of auditing procedures used to understand the internal control structure related to spending?
(PRAISE) • Physical controls • Recording • Authorization • Independent checks • Segregation of duties • Evaluate performance
What are the examples of auditing procedures used to understand the internal control structure related to spending?
(PRAISE) • Physical controls • Recording • Authorization • I\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ • Segregation of duties • Evaluate performance
What are the examples of auditing procedures used to understand the internal control structure related to spending?
(PRAISE) • Physical controls • Recording • Authorization • Independent checks • Segregation of duties • Evaluate performance
What are the examples of auditing procedures used to understand the internal control structure related to spending?
(PRAISE) • Physical controls • Recording • Authorization • Independent checks • S\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ • Evaluate performance
What are the examples of auditing procedures used to understand the internal control structure related to spending?
(PRAISE) • Physical controls • Recording • Authorization • Independent checks • Segregation of duties • Evaluate performance
What are the examples of auditing procedures used to understand the internal control structure related to spending?
(PRAISE) • Physical controls • Recording • Authorization • Independent checks • Segregation of duties • E\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
What are the examples of auditing procedures used to understand the internal control structure related to spending?
(PRAISE) • Physical controls • Recording • Authorization • Independent checks • Segregation of duties • Evaluate performance
What are the examples of auditing procedures used to understand the internal control structure related to spending?
(PRAISE) • Physical controls • \_\_\_\_\_\_\_\_ • Authorization • Independent checks • Segregation of duties • Evaluate performance
What are the examples of auditing procedures used to understand the internal control structure related to spending?
(PRAISE) • Physical controls • Recording • Authorization • Independent checks • Segregation of duties • Evaluate performance
What are the examples of auditing procedures used to understand the internal control structure related to spending?
(PRAISE) • Physical controls • Recording • \_\_\_\_\_\_\_\_\_\_\_ • Independent checks • Segregation of duties • Evaluate performance
What are the examples of auditing procedures used to understand the internal control structure related to spending?
(PRAISE) • Physical controls • Recording • Authorization • Independent checks • Segregation of duties • Evaluate performance
What are the examples of auditing procedures used to understand the internal control structure related to spending?
(PR____)
What are the examples of auditing procedures used to understand the internal control structure related to spending?
(PRAISE)
What are the examples of auditing procedures used to understand the internal control structure related to spending?
(PR__SE)
What are the examples of auditing procedures used to understand the internal control structure related to spending?
(PRAISE)
What are the examples of auditing procedures used to understand the internal control structure related to spending?
(PRAISE) • \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ • Recording • Authorization • Independent checks • Segregation of duties • Evaluate performance
What are the examples of auditing procedures used to understand the internal control structure related to spending?
(PRAISE) • Physical controls • Recording • Authorization • Independent checks • Segregation of duties • Evaluate performance
What are the examples of auditing procedures used to understand the internal control structure related to spending?
(PRAISE) • Physical controls • Recording • Authorization • \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ • Segregation of duties • Evaluate performance
What are the examples of auditing procedures used to understand the internal control structure related to spending?
(PRAISE) • Physical controls • Recording • Authorization • Independent checks • Segregation of duties • Evaluate performance
What are the examples of auditing procedures used to understand the internal control structure related to spending?
(PRAISE) • Physical controls • Recording • Authorization • Independent checks • \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ • Evaluate performance
What are the examples of auditing procedures used to understand the internal control structure related to spending?
(PRAISE) • Physical controls • Recording • Authorization • Independent checks • Segregation of duties • Evaluate performance
What are the examples of auditing procedures used to understand the internal control structure related to spending?
(PRAISE) • Physical controls • Recording • Authorization • Independent checks • Segregation of duties • \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
What are the examples of auditing procedures used to understand the internal control structure related to spending?
(PRAISE) • Physical controls • Recording • Authorization • Independent checks • Segregation of duties • Evaluate performance
What are the examples of auditing procedures used to understand the internal control structure related to spending?
(P______)
What are the examples of auditing procedures used to understand the internal control structure related to spending?
(PRAISE)
Examples of _______ procedures used to understand the internal control structure related to spending.
(PRAISE) • Physical controls • Recording • Authorization • Independent checks • Segregation of duties • Evaluate performance
Examples of auditing procedures used to understand the internal control structure related to spending.
(PRAISE) • Physical controls • Recording • Authorization • Independent checks • Segregation of duties • Evaluate performance
Examples of auditing __________ used to understand the internal control structure related to spending.
(PRAISE) • Physical controls • Recording • Authorization • Independent checks • Segregation of duties • Evaluate performance
Examples of auditing procedures used to understand the internal control structure related to spending.
(PRAISE) • Physical controls • Recording • Authorization • Independent checks • Segregation of duties • Evaluate performance
Examples of auditing procedures used to understand the internal control _________ related to spending.
(PRAISE) • Physical controls • Recording • Authorization • Independent checks • Segregation of duties • Evaluate performance
Examples of auditing procedures used to understand the internal control structure related to spending.
(PRAISE) • Physical controls • Recording • Authorization • Independent checks • Segregation of duties • Evaluate performance
Examples of auditing procedures used to understand the ________ control structure related to spending.
(PRAISE) • Physical controls • Recording • Authorization • Independent checks • Segregation of duties • Evaluate performance
Examples of auditing procedures used to understand the internal control structure related to spending.
(PRAISE) • Physical controls • Recording • Authorization • Independent checks • Segregation of duties • Evaluate performance
Examples of auditing procedures used to understand the internal control structure related to _________.
(PRAISE) • Physical controls • Recording • Authorization • Independent checks • Segregation of duties • Evaluate performance
Examples of auditing procedures used to understand the internal control structure related to spending.
(PRAISE) • Physical controls • Recording • Authorization • Independent checks • Segregation of duties • Evaluate performance
“Verify that all goods are received by the receiving department and returns are shipped by the shipping department.”
The paragraph above described what type of auditing procedure used to understand the internal control structure related to spending.
(PRAISE) • Physical controls • Recording • Authorization • Independent checks • Segregation of duties • Evaluate performance
• Physical controls – Verify that all goods are received by the receiving department and returns are shipped by the shipping department.
“Verify that receiving reports are prepared for all goods received and that debit memos are prepared for all goods that are returned.”
The paragraph above described what type of auditing procedure used to understand the internal control structure related to spending.
(PRAISE) • Physical controls • Recording • Authorization • Independent checks • Segregation of duties • Evaluate performance
• Recording – Verify that receiving reports are prepared for all goods received and that debit memos are prepared for all goods that are returned.
“Select individual cancelled checks and vouch them to the purchase orders, receiving reports, vendor invoices, and payment vouchers.”
The paragraph above described what type of auditing procedure used to understand the internal control structure related to spending.
(PRAISE) • Physical controls • Recording • Authorization • Independent checks • Segregation of duties • Evaluate performance
• Authorization – Select individual cancelled checks and vouch them to the purchase orders, receiving reports, vendor invoices, and payment vouchers.
“Verify that the client periodically performs inventory counts and reconciles amounts on hand to inventory records so as to know when inventory has been lost or stolen.”
The paragraph above described what type of auditing procedure used to understand the internal control structure related to spending.
(PRAISE) • Physical controls • Recording • Authorization • Independent checks • Segregation of duties • Evaluate performance
• Independent checks – Verify that the client periodically performs inventory counts and reconciles amounts on hand to inventory records so as to know when inventory has been lost or stolen.
“Use inquiry and observation to determine that there is a separation of the functions of
(1) authorization of purchases and payments,
(2) recording of purchase orders and posting to the purchase journal, and
(3) custody of inventory and checks for payment.”
The paragraph above described what type of auditing procedure used to understand the internal control structure related to spending.
(PRAISE) • Physical controls • Recording • Authorization • Independent checks • Segregation of duties • Evaluate performance
• Segregation of duties
– Use inquiry and observation to determine that there is a separation of the functions of
(1) authorization of purchases and payments,
(2) recording of purchase orders and posting to the purchase journal, and
(3) custody of inventory and checks for payment.
“Determine if the client uses a standard costing system that generates variances, enabling them to identify actual cost numbers that may be incorrect.”
The paragraph above described what type of auditing procedure used to understand the internal control structure related to spending.
(PRAISE) • Physical controls • Recording • Authorization • Independent checks • Segregation of duties • Evaluate performance
• Evaluate performance – Determine if the client uses a standard costing system that generates variances, enabling them to identify actual cost numbers that may be incorrect.
Physical controls
– Verify that all ______ are
received by the receiving department
Physical controls
– Verify that all goods are
received by the receiving department
Physical controls
– ______ that all goods are
received by the receiving department
Physical controls
– Verify that all goods are
received by the receiving department
Physical controls
– Verify that ___ goods are
received by the receiving department
Physical controls
– Verify that all goods are
received by the receiving department
Physical controls
– Verify that all goods are
_______ by the receiving department
Physical controls
– Verify that all goods are
received by the receiving department
Physical controls
– Verify that all goods are
received by the ________ department
Physical controls
– Verify that all goods are
received by the receiving department
Physical controls
– Verify that all goods are
received by the receiving department
and
returns are _______ by the shipping department.
Physical controls
– Verify that all goods are
received by the receiving department
and
returns are shipped by the shipping department.
Physical controls
– Verify that all goods are
received by the receiving department
and
returns are shipped by the _________ department.
Physical controls
– Verify that all goods are
received by the receiving department
and
returns are shipped by the shipping department.
Recording
– Verify that receiving reports are prepared for all goods received
and that debit memos are prepared for all goods that are returned.
Recording
– Verify that receiving reports are prepared for all goods received
and that debit memos are prepared for all goods that are returned.
Recording
– Verify that receiving _______ are prepared for all goods received
Recording
– Verify that receiving reports are prepared for all goods received
Recording
– Verify that receiving reports are prepared for ___ goods received
Recording
– Verify that receiving reports are prepared for all goods received
Recording
– Verify that receiving reports are prepared for all goods ________
Recording
– Verify that receiving reports are prepared for all goods received
Recording
– _______ that receiving reports are prepared for all goods received
Recording
– Verify that receiving reports are prepared for all goods received
Recording
– Verify that receiving reports are prepared for all ______ received
Recording
– Verify that receiving reports are prepared for all goods received
Recording
– Verify that receiving reports are prepared for all goods received
and that debit _____ are prepared for all goods that are returned.
Recording
– Verify that receiving reports are prepared for all goods received
and that debit memos are prepared for all goods that are returned.
Recording
– Verify that receiving reports are prepared for all goods received
and that _____ memos are prepared for all goods that are returned.
Recording
– Verify that receiving reports are prepared for all goods received
and that debit memos are prepared for all goods that are returned.
Recording
– Verify that receiving reports are prepared for all goods received
and that debit memos are prepared for ___ goods that are returned.
Recording
– Verify that receiving reports are prepared for all goods received
and that debit memos are prepared for all goods that are returned.
Recording
– Verify that receiving reports are prepared for all goods received
and that debit memos are prepared for all goods that are ________.
Recording
– Verify that receiving reports are prepared for all goods received
and that debit memos are prepared for all goods that are returned.
___________
– Verify that receiving reports are prepared for all goods received
and that debit memos are prepared for all goods that are returned.
Recording
– Verify that receiving reports are prepared for all goods received
and that debit memos are prepared for all goods that are returned.
Authorization
– Select individual cancelled checks
and vouch them to the purchase orders, receiving reports, vendor invoices, and payment vouchers.
Authorization
– Select individual cancelled checks
and vouch them to the purchase orders, receiving reports, vendor invoices, and payment vouchers.
Authorization
– Select individual cancelled ________
Authorization
– Select individual cancelled checks
Authorization
– _______ individual cancelled checks
Authorization
– Select individual cancelled checks
Authorization
– Select individual _________ checks
Authorization
– Select individual cancelled checks
Authorization
– Select individual cancelled checks
and _______ them to
the purchase orders,
Authorization
– Select individual cancelled checks
and vouch them to
the purchase orders,
Authorization
– Select individual cancelled checks
and vouch them to
the __________ orders,
receiving reports,
Authorization
– Select individual cancelled checks
and vouch them to
the purchase orders,
receiving reports,
Authorization
– Select individual cancelled checks
and vouch them to
the purchase orders,
__________ reports,
Authorization
– Select individual cancelled checks
and vouch them to
the purchase orders,
receiving reports,
Authorization
– Select individual cancelled checks
and vouch them to
the purchase orders,
receiving reports,
vendor ________,
Authorization
– Select individual cancelled checks
and vouch them to
the purchase orders,
receiving reports,
vendor invoices,
Authorization
– Select individual cancelled checks
and vouch them to the purchase orders, receiving reports, vendor invoices, and \_\_\_\_\_\_\_\_\_\_ vouchers.
Authorization
– Select individual cancelled checks
and vouch them to the purchase orders, receiving reports, vendor invoices, and payment vouchers.
Authorization
– Select individual cancelled checks
and vouch them to the purchase \_\_\_\_\_\_\_, \_\_\_\_\_\_\_\_\_ reports, vendor invoices, and payment vouchers.
Authorization
– Select individual cancelled checks
and vouch them to the purchase orders, receiving reports, vendor invoices, and payment vouchers.
Authorization
– Select individual cancelled checks
and vouch them to the purchase orders, receiving reports, \_\_\_\_\_\_\_ invoices, and payment \_\_\_\_\_\_\_\_.
Authorization
– Select individual cancelled checks
and vouch them to the purchase orders, receiving reports, vendor invoices, and payment vouchers.
___________
– Select individual cancelled checks
and vouch them to the purchase orders, receiving reports, vendor invoices, and payment vouchers.
Authorization
– Select individual cancelled checks
and vouch them to the purchase orders, receiving reports, vendor invoices, and payment vouchers.
Independent checks
– Verify that the client periodically performs __________ counts
Independent checks
– Verify that the client periodically performs inventory counts
Independent checks
– Verify that the client periodically performs inventory ______
Independent checks
– Verify that the client periodically performs inventory counts
Independent checks
– ______ that the client periodically performs inventory counts
Independent checks
– Verify that the client periodically performs inventory counts
Independent checks
– Verify that the client __________ performs inventory counts
Independent checks
– Verify that the client periodically performs inventory counts
Independent checks
– Verify that the client periodically performs inventory counts
and reconciles _______ on hand to inventory records
Independent checks
– Verify that the client periodically performs inventory counts
and reconciles amounts on hand to inventory records
Independent checks
– Verify that the client periodically performs inventory counts
and _________ amounts on hand to inventory records
Independent checks
– Verify that the client periodically performs inventory counts
and reconciles amounts on hand to inventory records
Independent checks
– Verify that the client periodically performs inventory counts
and reconciles amounts on hand to inventory _______
Independent checks
– Verify that the client periodically performs inventory counts
and reconciles amounts on hand to inventory records
Independent checks
– Verify that the client periodically performs inventory counts
and reconciles amounts on _____ to inventory records
so as to know when inventory has been lost or stolen.
Independent checks
– Verify that the client periodically performs inventory counts
and reconciles amounts on hand to inventory records
so as to know when inventory has been lost or stolen.
Independent checks
– Verify that the client periodically performs inventory counts
and reconciles amounts on hand to inventory records
so as to know when __________ has been lost or stolen.
Independent checks
– Verify that the client periodically performs inventory counts
and reconciles amounts on hand to inventory records
so as to know when inventory has been lost or stolen.
Independent checks
– Verify that the client periodically performs inventory counts
and reconciles amounts on hand to inventory records
so as to know when inventory has been lost or ________.
Independent checks
– Verify that the client periodically performs inventory counts
and reconciles amounts on hand to inventory records
so as to know when inventory has been lost or stolen.
________________
– Verify that the client periodically performs inventory counts
and reconciles amounts on hand to inventory records
so as to know when inventory has been lost or stolen.
Independent checks
– Verify that the client periodically performs inventory counts
and reconciles amounts on hand to inventory records
so as to know when inventory has been lost or stolen.
Segregation of duties
– Use ________ and observation to determine that there is a separation
Segregation of duties
– Use inquiry and observation to determine that there is a separation
Segregation of duties
– Use inquiry and ____________ to determine that there is a separation
Segregation of duties
– Use inquiry and observation to determine that there is a separation
Segregation of duties
– Use inquiry and observation to ___________ that there is a separation
Segregation of duties
– Use inquiry and observation to determine that there is a separation
Segregation of duties
– Use inquiry and observation to determine that there is a separation of the _________ of
(1) authorization of purchases and payments,
Segregation of duties
– Use inquiry and observation to determine that there is a separation of the functions of
(1) authorization of purchases and payments,
Segregation of duties
– Use inquiry and observation to determine that there is a ___________ of the functions of
(1) authorization of purchases and payments,
Segregation of duties
– Use inquiry and observation to determine that there is a separation of the functions of
(1) authorization of purchases and payments,
Segregation of duties
– Use inquiry and observation to determine that there is a separation of the functions of
(1) ___________ of purchases and payments,
Segregation of duties
– Use inquiry and observation to determine that there is a separation of the functions of
(1) authorization of purchases and payments,
Segregation of duties
– Use inquiry and observation to determine that there is a separation of the functions of
(1) authorization of _________ and payments,
Segregation of duties
– Use inquiry and observation to determine that there is a separation of the functions of
(1) authorization of purchases and payments,
Segregation of duties
– Use inquiry and observation to determine that there is a separation of the functions of
(1) authorization of purchases and __________,
Segregation of duties
– Use inquiry and observation to determine that there is a separation of the functions of
(1) authorization of purchases and payments,
Segregation of duties
– Use inquiry and observation to determine that there is a separation of the functions of
(1) authorization of purchases and payments,
(2) _________ of purchase orders and posting to the purchase journal,
Segregation of duties
– Use inquiry and observation to determine that there is a separation of the functions of
(1) authorization of purchases and payments,
(2) recording of purchase orders and posting to the purchase journal,
Segregation of duties
– Use inquiry and observation to determine that there is a separation of the functions of
(1) authorization of purchases and payments,
(2) recording of ________ orders and posting to the purchase journal,
Segregation of duties
– Use inquiry and observation to determine that there is a separation of the functions of
(1) authorization of purchases and payments,
(2) recording of purchase orders and posting to the purchase journal,
Segregation of duties
– Use inquiry and observation to determine that there is a separation of the functions of
(1) authorization of purchases and payments,
(2) recording of purchase orders and _______ to the purchase journal,
Segregation of duties
– Use inquiry and observation to determine that there is a separation of the functions of
(1) authorization of purchases and payments,
(2) recording of purchase orders and posting to the purchase journal,
Segregation of duties
– Use inquiry and observation to determine that there is a separation of the functions of
(1) authorization of purchases and payments,
(2) recording of purchase orders and posting to the purchase _______,
Segregation of duties
– Use inquiry and observation to determine that there is a separation of the functions of
(1) authorization of purchases and payments,
(2) recording of purchase orders and posting to the purchase journal,
Segregation of duties
– Use inquiry and observation to determine that there is a separation of the functions of
(1) authorization of purchases and payments,
(2) recording of purchase orders and posting to the purchase journal, and
(3) custody of _________ and checks for payment.
Segregation of duties
– Use inquiry and observation to determine that there is a separation of the functions of
(1) authorization of purchases and payments,
(2) recording of purchase orders and posting to the purchase journal, and
(3) custody of inventory and checks for payment.
Segregation of duties
– Use inquiry and observation to determine that there is a separation of the functions of
(1) authorization of purchases and payments,
(2) recording of purchase orders and posting to the purchase journal, and
(3) ______ of inventory and checks for payment.
Segregation of duties
– Use inquiry and observation to determine that there is a separation of the functions of
(1) authorization of purchases and payments,
(2) recording of purchase orders and posting to the purchase journal, and
(3) custody of inventory and checks for payment.
Segregation of duties
– Use inquiry and observation to determine that there is a separation of the functions of
(1) authorization of purchases and payments,
(2) recording of purchase orders and posting to the purchase journal, and
(3) custody of inventory and _______ for payment.
Segregation of duties
– Use inquiry and observation to determine that there is a separation of the functions of
(1) authorization of purchases and payments,
(2) recording of purchase orders and posting to the purchase journal, and
(3) custody of inventory and checks for payment.
Segregation of duties
– Use inquiry and observation to determine that there is a separation of the functions of
(1) authorization of purchases and payments,
(2) recording of purchase orders and posting to the purchase journal, and
(3) custody of inventory and checks for ________.
Segregation of duties
– Use inquiry and observation to determine that there is a separation of the functions of
(1) authorization of purchases and payments,
(2) recording of purchase orders and posting to the purchase journal, and
(3) custody of inventory and checks for payment.
__________________
– Use inquiry and observation to determine that there is a separation of the functions of
(1) authorization of purchases and payments,
(2) recording of purchase orders and posting to the purchase journal, and
(3) custody of inventory and checks for payment.
Segregation of duties
– Use inquiry and observation to determine that there is a separation of the functions of
(1) authorization of purchases and payments,
(2) recording of purchase orders and posting to the purchase journal, and
(3) custody of inventory and checks for payment.
Evaluate performance
– Determine if the client uses a _________ costing system that generates variances,
Evaluate performance
– Determine if the client uses a standard costing system that generates variances,
Evaluate performance
– Determine if the client uses a standard costing system that generates _________,
Evaluate performance
– Determine if the client uses a standard costing system that generates variances,
Evaluate performance
– Determine if the client uses a standard costing system that generates variances,
enabling them to identify ______ cost numbers that may be incorrect.
Evaluate performance
– Determine if the client uses a standard costing system that generates variances,
enabling them to identify actual cost numbers that may be incorrect.
Evaluate performance
– Determine if the client uses a standard costing system that generates variances,
enabling them to identify actual ____ numbers that may be incorrect.
Evaluate performance
– Determine if the client uses a standard costing system that generates variances,
enabling them to identify actual cost numbers that may be incorrect.
Evaluate performance
– Determine if the client uses a standard costing system that generates variances,
enabling them to identify actual cost _________ that may be incorrect.
Evaluate performance
– Determine if the client uses a standard costing system that generates variances,
enabling them to identify actual cost numbers that may be incorrect.
Evaluate performance
– Determine if the client uses a standard costing system that generates variances,
enabling them to identify actual cost numbers that may be _________.
Evaluate performance
– Determine if the client uses a standard costing system that generates variances,
enabling them to identify actual cost numbers that may be incorrect.
___________________
– Determine if the client uses a standard costing system that generates variances,
enabling them to identify actual cost numbers that may be incorrect.
Evaluate performance
– Determine if the client uses a standard costing system that generates variances,
enabling them to identify actual cost numbers that may be incorrect.
_________ through the system in the normal order
(from source documents to postings in books and records)
source documents –> books posting
is an attempt to verify the COMPLETENESS of the records,
Tracing through the system in the normal order
(from source documents to postings in books and records)
source documents –> books posting
is an attempt to verify the COMPLETENESS of the records,
Tracing through the system in the normal order
(from source documents to postings in books and _______)
source documents –> books posting
is an attempt to verify the COMPLETENESS of the records,
Tracing through the system in the normal order
(from source documents to postings in books and records)
source documents –> books posting
is an attempt to verify the COMPLETENESS of the records,
Tracing through the system in the normal order
(from source ________ to postings in books and records)
source documents –> books posting
is an attempt to verify the COMPLETENESS of the records,
Tracing through the system in the normal order
(from source documents to postings in books and records)
source documents –> books posting
is an attempt to verify the COMPLETENESS of the records,
Tracing through the system in the normal order
(from source documents to postings in books and records)
source documents –> books posting
is an attempt to verify the ___________ of the records,
Tracing through the system in the normal order
(from source documents to postings in books and records)
source documents –> books posting
is an attempt to verify the COMPLETENESS of the records,
Tracing from ________ documents to postings in books and records
source documents –> books posting
is an attempt to verify the COMPLETENESS of the records,
Tracing from source documents to postings in books and records
source documents –> books posting
is an attempt to verify the COMPLETENESS of the records,
Tracing from source documents to ________ in books and records
source documents –> books posting
is an attempt to verify the COMPLETENESS of the records,
Tracing from source documents to postings in books and records
source documents –> books posting
is an attempt to verify the COMPLETENESS of the records,
Tracing from source documents to postings in books and records
source documents –> books posting
is an attempt to ______ the COMPLETENESS of the records,
Tracing from source documents to postings in books and records
source documents –> books posting
is an attempt to verify the COMPLETENESS of the records,
_________ in reverse order
(from books and records back to source documents)
Books record –> source documents
is an attempt to verify the existence or occurrence of all the transactions that are reflected in the records.
Vouching in reverse order
(from books and records back to source documents)
Books record –> source documents
is an attempt to verify the existence or occurrence of all the transactions that are reflected in the records.
Vouching in reverse order
(from books and records back to source _________)
Books record –> source documents
is an attempt to verify the existence or occurrence of all the transactions that are reflected in the records.
Vouching in reverse order
(from books and records back to source documents)
Books record –> source documents
is an attempt to verify the EXISTENCE or OCCURRENCE of all the transactions that are reflected in the records.
_________ in reverse order
(from books and records back to source documents)
Books record –> source documents
is an attempt to verify the EXISTENCE or OCCURRENCE of all the transactions that are reflected in the records.
Vouching in reverse order
(from books and records back to source documents)
Books record –> source documents
is an attempt to verify the EXISTENCE or OCCURRENCE of all the transactions that are reflected in the records.
Vouching in ______ order
(from books and records back to source documents)
Books record –> source documents
is an attempt to verify the EXISTENCE or OCCURRENCE of all the transactions that are reflected in the records.
Vouching in reverse order
(from books and records back to source documents)
Books record –> source documents
is an attempt to verify the EXISTENCE or OCCURRENCE of all the transactions that are reflected in the records.
Vouching in reverse order
(from _____ and records back to source documents)
Books record –> source documents
is an attempt to verify the EXISTENCE or OCCURRENCE of all the transactions that are reflected in the records.
Vouching in reverse order
(from books and records back to source documents)
Books record –> source documents
is an attempt to verify the EXISTENCE or OCCURRENCE of all the transactions that are reflected in the records.
Vouching in reverse order
(from books and records back to source documents)
Books record –> source documents
is an attempt to verify the __________ or OCCURRENCE of all the transactions that are reflected in the records.
Vouching in reverse order
(from books and records back to source documents)
Books record –> source documents
is an attempt to verify the EXISTENCE or OCCURRENCE of all the transactions that are reflected in the records.
Vouching in reverse order
(from books and records back to source documents)
Books record –> source documents
is an attempt to verify the EXISTENCE or __________ of all the transactions that are reflected in the records.
Vouching in reverse order
(from books and records back to source documents)
Books record –> source documents
is an attempt to verify the EXISTENCE or OCCURRENCE of all the transactions that are reflected in the records.
Vouching in reverse order
(from books and records back to source documents)
Books record –> source documents
is an attempt to _____ the EXISTENCE or OCCURRENCE of all the transactions that are reflected in the records.
Vouching in reverse order
(from books and records back to source documents)
Books record –> source documents
is an attempt to verify the EXISTENCE or OCCURRENCE of all the transactions that are reflected in the records.
_________ in reverse order from books and records back to source documents
Books record –> source documents
is an attempt to verify the EXISTENCE or OCCURRENCE of all the transactions
Vouching in reverse order from books and records back to source documents
Books record –> source documents
is an attempt to verify the EXISTENCE or OCCURRENCE of all the transactions
Vouching in reverse order from books and records back to source _________
Books record –> source documents
is an attempt to verify the EXISTENCE or OCCURRENCE of all the transactions
Vouching in reverse order from books and records back to source documents
Books record –> source documents
is an attempt to verify the EXISTENCE or OCCURRENCE of all the transactions
Vouching in reverse order from books and records back to source documents
Books record –> source documents
is an attempt to verify the ________ or OCCURRENCE of all the transactions
Vouching in reverse order from books and records back to source documents
Books record –> source documents
is an attempt to verify the EXISTENCE or OCCURRENCE of all the transactions
Vouching in reverse order from books and records back to source documents
Books record –> source documents
is an attempt to verify the EXISTENCE or OCCURRENCE of ___ the transactions
Vouching in reverse order from books and records back to source documents
Books record –> source documents
is an attempt to verify the EXISTENCE or OCCURRENCE of all the transactions
What is the auditor primarily concerned with related to the various management assertions?
What is the auditor primarily concerned with related to the various management assertions?
Answer: The auditor is primarily concerned with the relationship of the various control activities to the various management assertions.
What is the auditor attempt to verify when tracing through the system in the normal order?
(Tracing from source documents –> postings in books and records)
What is the auditor attempt to verify when tracing through the system in the normal order?
(Tracing from source documents –> postings in books and records)
Answer: The auditor attempt to verify the COMPLETENESS of the records.
Tracing through the system in the normal order,
from source documents –> postings in books and records,
is an attempt to verify the completeness of the records.
What is the auditor attempt to verify when vouching in reverse order?
(Vouching from books and records back to —> source documents)
What is the auditor attempt to verify when vouching in reverse order?
(Vouching from books and records back to —> source documents)
Answer: The auditor attempt to verify the existence or occurrence of the records.
Vouching in reverse order,
from books and records back to –> source documents,
is an attempt to verify the existence or occurrence of all the transactions that are reflected in the records.
For proper ____________ of duties,
authorization of transactions,
the recording function, and
custody of assets
should be kept separate.
For proper segregation of duties,
authorization of transactions,
the recording function, and
custody of assets
should be kept separate.
For proper segregation of _____,
authorization of transactions,
the recording function, and
custody of assets
should be kept separate.
For proper segregation of duties,
authorization of transactions,
the recording function, and
custody of assets
should be kept separate.
For proper segregation of duties,
___________ of transactions,
the recording function, and
custody of assets
should be kept separate.
For proper segregation of duties,
authorization of transactions,
the recording function, and
custody of assets
should be kept separate.
For proper segregation of duties,
authorization of transactions,
the _________ function, and
custody of assets
should be kept separate.
For proper segregation of duties,
authorization of transactions,
the recording function, and
custody of assets
should be kept separate.
For proper segregation of duties,
authorization of transactions,
the recording function, and
_______ of assets
should be kept separate.
For proper segregation of duties,
authorization of transactions,
the recording function, and
custody of assets
should be kept separate.
For proper segregation of duties,
authorization of __________,
the recording function, and
custody of assets
should be kept separate.
For proper segregation of duties,
authorization of transactions,
the recording function, and
custody of assets
should be kept separate.
For proper segregation of duties,
authorization of transactions,
the recording ________, and
custody of assets
should be kept separate.
For proper segregation of duties,
authorization of transactions,
the recording function, and
custody of assets
should be kept separate.
For proper segregation of duties,
authorization of transactions,
the recording function, and
custody of _______
should be kept separate.
For proper segregation of duties,
authorization of transactions,
the recording function, and
custody of assets
should be kept separate.
For proper segregation of duties,
authorization of transactions,
the recording function, and
custody of assets
should be kept __________.
For proper segregation of duties,
authorization of transactions,
the recording function, and
custody of assets
should be kept separate.
For proper segregation of duties,
___________ of transactions,
the _________ function, and
________ of assets
should be kept separate.
For proper segregation of duties,
authorization of transactions,
the recording function, and
custody of assets
should be kept separate.
• The functions of
_________ purchases,
receiving goods purchased,
and recording the purchase
should be segregated.
• The functions of
authorizing purchases,
receiving goods purchased,
and recording the purchase
should be segregated.
• The functions of
authorizing purchases,
__________ goods purchased,
and recording the purchase
should be segregated.
• The functions of
authorizing purchases,
receiving goods purchased,
and recording the purchase
should be segregated.
• The functions of
authorizing purchases,
receiving goods purchased,
and __________ the purchase
should be segregated.
• The functions of
authorizing purchases,
receiving goods purchased,
and recording the purchase
should be segregated.
• The functions of
authorizing _________,
receiving goods purchased,
and recording the purchase
should be segregated.
• The functions of
authorizing purchases,
receiving goods purchased,
and recording the purchase
should be segregated.
• The functions of
authorizing purchases,
receiving goods __________,
and recording the purchase
should be segregated.
• The functions of
authorizing purchases,
receiving goods purchased,
and recording the purchase
should be segregated.
• The functions of
authorizing purchases,
receiving goods purchased,
and recording the _________
should be segregated.
• The functions of
authorizing purchases,
receiving goods purchased,
and recording the purchase
should be segregated.
• The functions of
authorizing purchases,
receiving goods purchased,
and recording the purchase
should be ___________.
• The functions of
authorizing purchases,
receiving goods purchased,
and recording the purchase
should be segregated.
• The _________ of
authorizing purchases,
receiving goods purchased,
and recording the purchase
should be segregated.
• The functions of
authorizing purchases,
receiving goods purchased,
and recording the purchase
should be segregated.
• The functions of
authorizing purchases,
receiving _______ purchased,
and recording the purchase
should be segregated.
• The functions of
authorizing purchases,
receiving goods purchased,
and recording the purchase
should be segregated.
• The functions of
authorizing purchases,
______________ purchased,
and recording the purchase
should be segregated.
• The functions of
authorizing purchases,
receiving goods purchased,
and recording the purchase
should be segregated.
• The functions of
authorizing purchases,
_________________________,
and recording the purchase
should be segregated.
• The functions of
authorizing purchases,
receiving goods purchased,
and recording the purchase
should be segregated.
• The functions of
authorizing purchases,
receiving goods purchased,
and __________ the _________
should be segregated.
• The functions of
authorizing purchases,
receiving goods purchased,
and recording the purchase
should be segregated.
• The functions of
_________ purchases,
_________ goods purchased,
and _________ the purchase
should be segregated.
• The functions of
authorizing purchases,
receiving goods purchased,
and recording the purchase
should be segregated.
• The cash __________ should be segregated.
• The cash functions should be segregated.
• The ____ functions should be segregated.
• The cash functions should be segregated.
• The cash functions should be ___________.
• The cash functions should be segregated.
• The cash functions should be segregated.
Authorizing payment for purchases,
recording _________,
• The cash functions should be segregated.
Authorizing payment for purchases,
recording payments,
• The cash functions should be segregated.
Authorizing payment for purchases,
recording payments,
access to ______,
• The cash functions should be segregated.
Authorizing payment for purchases,
recording payments,
access to checks,
• The cash functions should be segregated.
Authorizing payment for purchases,
recording payments,
_______ to checks,
• The cash functions should be segregated.
Authorizing payment for purchases,
recording payments,
access to checks,
• The cash functions should be segregated.
Authorizing payment for purchases,
recording payments,
access to checks, and
___________ of the bank account
• The cash functions should be segregated.
Authorizing payment for purchases,
recording payments,
access to checks, and
reconciliation of the bank account
• The cash functions should be segregated.
Authorizing payment for purchases,
recording payments,
access to checks, and
reconciliation of the _____ account
should be segregated.
• The cash functions should be segregated.
Authorizing payment for purchases,
recording payments,
access to checks, and
reconciliation of the bank account
should be segregated.
• The cash functions should be segregated.
Authorizing payment for purchases,
recording payments,
access to checks, and
reconciliation of the bank _______
should be segregated.
• The cash functions should be segregated.
Authorizing payment for purchases,
recording payments,
access to checks, and
reconciliation of the bank account
should be segregated.
• The cash functions should be segregated.
Authorizing payment for purchases,
recording payments,
access to checks, and
reconciliation of the bank account
should be ___________.
• The cash functions should be segregated.
Authorizing payment for purchases,
recording payments,
access to checks, and
reconciliation of the bank account
should be segregated.
• The cash functions should be segregated.
_________________ for purchases,
recording payments,
access to checks, and
reconciliation of the bank account
should be segregated.
• The cash functions should be segregated.
Authorizing payment for purchases,
recording payments,
access to checks, and
reconciliation of the bank account
should be segregated.
• The cash functions should be segregated.
Authorizing payment for purchases,
________________,
access to checks, and
reconciliation of the bank account
should be segregated.
• The cash functions should be segregated.
Authorizing payment for purchases,
recording payments,
access to checks, and
reconciliation of the bank account
should be segregated.
• The cash functions should be segregated.
Authorizing payment for purchases,
recording payments,
access to checks, and
____________ of the bank _________
should be segregated.
• The cash functions should be segregated.
Authorizing payment for purchases,
recording payments,
access to checks, and
reconciliation of the bank account
should be segregated.
• The cash functions should be segregated.
Authorizing payment for purchases,
recording payments,
______ to _______, and
reconciliation of the bank account
should be segregated.
• The cash functions should be segregated.
Authorizing payment for purchases,
recording payments,
access to checks, and
reconciliation of the bank account
should be segregated.
• Individuals with _________ to approve vouchers for payment
should not have access to unused purchase orders.
• Individuals with authority to approve vouchers for payment
should not have access to unused purchase orders.
• Individuals with authority to _______ vouchers for payment
should not have access to unused purchase orders.
• Individuals with authority to approve vouchers for payment
should not have access to unused purchase orders.
• _________ with authority to approve vouchers for payment
should not have access to unused purchase orders.
• Individuals with authority to approve vouchers for payment
should not have access to unused purchase orders.
• Individuals with authority to approve ________ for payment
should not have access to unused purchase orders.
• Individuals with authority to approve vouchers for payment
should not have access to unused purchase orders.
• Individuals with authority to approve vouchers for _________
should not have access to unused purchase orders.
• Individuals with authority to approve vouchers for payment
should not have access to unused purchase orders.
• Individuals with authority to approve vouchers for payment
should not have ______ to unused purchase orders.
• Individuals with authority to approve vouchers for payment
should not have access to unused purchase orders.
• Individuals with authority to approve vouchers for payment
should not have access to unused purchase ______.
• Individuals with authority to approve vouchers for payment
should not have access to unused purchase orders.
• Individuals with authority to approve vouchers for payment
should not have access to _______ purchase orders.
• Individuals with authority to approve vouchers for payment
should not have access to unused purchase orders.
• Individuals with authority to approve vouchers for payment
should ___ have access to unused purchase orders.
• Individuals with authority to approve vouchers for payment
should not have access to unused purchase orders.
Should a manager who authorizes purchases perform recording function of the purchases?
Should a manager who authorizes purchases perform recording function of the purchases?
Answer: No
The functions of authorizing purchases, receiving goods purchased, and recording the purchase should be segregated.
Should a manager who authorizes purchases perform recording function of the purchases?
Should a manager who authorizes purchases perform recording function of the purchases?
Answer: No
The functions of authorizing purchases, receiving goods purchased, and recording the purchase should be segregated.
Should an employee who receives goods purchases perform recording function of the purchases?
Should an employee who receives goods purchases perform recording function of the purchases?
Answer: No
The functions of authorizing purchases, receiving goods purchased, and recording the purchase should be segregated.
Should an employee who receives goods purchases perform recording function of the purchases?
Should an employee who receives goods purchases perform recording function of the purchases?
Answer: No
The functions of authorizing purchases, receiving goods purchased, and recording the purchase should be segregated.
Should a person who perform bank reconciliation also recording payments?
Should a person who perform bank reconciliation also recording payments?
Answer: No
The cash functions should be segregated.
Authorizing payment for purchases, recording payments, access to checks, and reconciliation of the bank account should be segregated.
Should a person who has access to checks also perform reconciliation of the bank account?
Should a person who has access to checks also perform reconciliation of the bank account?
Answer: No
The cash functions should be segregated.
Authorizing payment for purchases, recording payments, access to checks, and reconciliation of the bank account should be segregated.
Should a person who has access to checks also perform reconciliation of the bank account?
Should a person who has access to checks also perform reconciliation of the bank account?
Answer: No
The cash functions should be segregated.
Authorizing payment for purchases, recording payments, access to checks, and reconciliation of the bank account should be segregated.
Should an individual with authority to approve vouchers for payment also have access to unused purchase orders?
Should an individuals with authority to approve vouchers for payment also have access to unused purchase orders?
Answer: No
Individuals with authority to approve vouchers for payment should not have access to unused purchase orders.
