Page 77 - Auditinf Electronic System

a) Check: In most cases, individual checks are recorded in a cash disbursements
transaction file. After a check is signed by an authorized person, it is an asset.
Therefore, when cashed by the vendor and cleared by the client’s bank at
that point it is no longer an asset, but now is a document.

b) Cash Disbursements Transaction File This is a computer-generated file that
includes all cash disbursements transactions processed by the accounting system
for a period, such as a day, week, or month. It includes the same type of
information discussed for the acquisition’s transaction file.

c) Cash Disbursements Journal or Listing This is a listing or report generated
from
the cash disbursements transaction file that includes all transactions for any time
period. The same transactions, including all relevant information, are included in
the accounts payable master file and general ledger.

Second: Designing tests of controls and substantive tests of
transactions for Acquisition and payment cycles

1. Tests of acquisitions, which concern three of the four business functions:
processing purchase orders, receiving goods and services, and recognizing the
liability

2. Tests of payments, which concern the fourth function, processing and recording
cash disbursements

1. Understand internal control of sales:
The auditor gains an understanding of internal control for the acquisition and

payment cycle as part of performing risk assessment procedures by studying the
client’s flow -charts, reviewing internal control questionnaires, and performing
walkthrough tests for acquisition and cash disbursement transactions. The
procedures for understanding internal control in the acquisition and payment cycle
are similar to the procedures performed in other transaction cycles, as discussed in
earlier chapters

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