Page 84 - Auditinf Electronic System

2- Completeness: Are all are all Existing Acquisitions Are Recorded?

➢ Auditors can trace selected vendors invoice to A/P master file. (EX: Tracing
forward) to detect potential misstatements that actual transactions were not
recorded (Understatements)

➢ To conduct a meaningful test using this procedure, the auditor must be confident
vendors invoice are included in the file. This can be done by accounting for a
numerical sequence of the documents.

3- Accuracy: are Acquisitions Are Accurately Recorded?

➢ Auditor depends on recalculations and comparison of information on
different documents, many tests can be performed here like:

▪ Recalculate subtotals and totals.
▪ Compare the details on the invoices with receiving reports for description,

quantity, and customer identification.
▪ Trace the invoices values to the journal and ledger.
▪ Examine purchase orders and receiving reports for the same information.

4- Classification: Are Acquisitions Are Correctly Classified

➢ Auditors must be concerned that transactions are charged to the correct general
ledger account. The correct classification of acquisition requires:

▪ Correct classification of purchases in cash and on credit
▪ Clear classification of purchases of assets and purchases of goods.

5- Timing: all transactions recorded in the correct dates?

➢ The auditor should compare the date on selected receiving documents with the
date on related vendors invoices, the purchase journal, and the accounts payable
master file.

➢ Significant differences indicate potential cutoff problems in the test of year-end
balances.

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