Audit Evidence: Purchasing Cycle

Question 1

Which of the following tests of details most likely would help an auditor determine whether accounts payable have been misstated?

Answer 1

Examining vendor statements for amounts not reported as purchases

Question 2

In testing the existence assertion for an asset, an auditor ordinarily works from the:

Answer 2

Accounting records to the supporting evidence.

Question 3

Under properly designed internal control, the same employee most likely would match vendors’ invoices with receiving reports and also

Answer 3

Recompute the calculations on vendors’ invoices.