List five asset accounts, three liability accounts, and five expense accounts included in the acquisition and payment cycle for a typical manufacturing company.
Distinguish between a vendor’s invoice and a vendor’s statement. Which document should ideally be used as evidence in auditing acquisition transactions and which is best when verifying accounts payable balances? Why?
If an audit client does not have prenumbered checks, what type of misstatement has a greater chance of occurring? Under the circumstances, what audit procedure can the auditor use to compensate for the deficiency?
List one possible internal control for each of the seven transactionrelated audit objectives for cash disbursements. For each control, list a test of control to test its effectiveness.
