Page 74 - Auditinf Electronic System

Auditing Acquisition and Payment Cycle

First: Business functions in Acquisition and payment cycles and the
related documents:

For each transaction the auditor should determine and understand

Affected Accounts Related business function Related Documents

Accounts Business Function Documents and Records
▪ Inventory Acquisitions
Purchase requisition
(Purchases) 1) Processing purchase Purchase order
▪ PPE order
▪ Prepaid expenses
▪ A/P 2) Receiving goods and Receiving report
▪ Expenses services
Vendor`s invoice
▪ Cash 3) Recognizing the Debit memo
▪ A/P liability Acquisition transaction
▪ Purchase file
Cash Disbursements Acquisition Journal or
discounts 4) Processing and listing
▪ Purchase R&A A/P master file
recording cash A/P trial balance.
disbursements
Checks
Cash disbursement
transaction file
Cash disbursement
Journal or listing

1. Processing Purchase orders:
The request for goods or services by the client’s personnel is the starting point
for the cycle. Common documents include:

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‫جميع الحقوق محفوظة ـ الإعتداء على حق المؤلف بالنسخ أو الطباعة يعرض فاعله للمسائلة القانونية‬