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Journal, Purchase

Part E Acquisitions Substantive Tests of Transactions| | | | TRANSACTION-RELATED TAXATION OBJECTIVES| HYPOSTATIC AUDIT PROCEDURES| Occurrence| 2. Compare prices on supplier invoices with approved selling price limits established by management. * Review the acquisitions record, general ledger, and accounts payable grasp file for large or strange amounts. | Completeness| * Trace an example of obtaining reports for the acquisitions journal.

* Trace from a file of vendors’ invoices for the acquisitions journal. Trace coming from additions in perpetual inventory records to recorded acquisitions. | Accuracy| * Review amounts intended for entries in acquisitions log to related vendors’ invoices, purchase requests and receiving information.

5. Recompute information on vendor invoices. * Assess prices upon vendor accounts with permitted price limitations established by administration. | Posting and Summarization| * Trace individual items in accounts payable expert file to acquisitions record. | Classification| * Analyze vendors’ bills for right classification. Compare classification with chart of accounts simply by reference to vendors’ invoices. | Timing| 5. Compare times of acquiring reports and vendors’ invoices with schedules in the purchases journal. | Part Farrenheit.

Money Disbursements Hypostatic Tests of Transactions| TRANSACTION-RELATED AUDIT OBJECTIVES| SUBSTANTIVE REVIEW PROCEDURES| Occurrence| * Find cancelled check numbers in the cash payments journal to related terminated checks and examine for payee, name, and quantity. Examine cancelled check for authorized signature, proper endorsement, and cancellation by bank. * Review the amount disbursements log, general journal, and accounts payable expert file for huge or uncommon amounts. * Trace cancelled check for the related purchases journal entrance and look at for paye name and amount. | Completeness| * Trace articles in purchases journal to subsequent repayment in cash disbursements log. Accuracy| * Compare terminated checks while using related purchases journal and cash disbursements journal items. * Recompute cash special discounts.

| Posting and Summarization| 2. Trace specific entries in accounts payable master file to cash disbursements journal. | Classification| * Compare classification with chart of accounts by simply reference to vendors’ invoices and acquisitions log. | Timing| * Compare dates in cancelled checks with money disbursements diary. * Assess dates upon cancelled checks with the lender cancellation time. |