Reference no: EM133083558

Audit Objectives Problem

For each audit procedue, select the appropriate audit objective from the drop down list.

The objectives associated with each letter are included at the bottom of this page.

1. Trace receiving reports to related invoice and entry in purchases journal to determine that existing purchases are recorded.

2. Add the purchases journal for the month of July and trace to amounts recorded in the general ledger.

3. For a sample of purchase transactions, determine whether department head has approved the expense account to be charged.

4. Examine sales invoices selected from the sales journal immediately before and after year end to determine if recorded in the proper period.

5. Vouch recorded sales to sales invoice and related shipping document to support the validity of sales.

6. Send written confirmations to customers to verify whether they have an outstanding accounts receivable balance.

7. Verify recorded fixed asset additions by physically examining the equipment.

8. Examine sales invoices recorded in the sales journal to determine whether the record amount agrees with the sales invoice and prices and quantities agree with the master price list and shipping document.

9. Add the client's listing of accounts receivable and agree to the balance per the general ledger.

10. Examine invoices recorded in repair and maintenance account to determine if any should be capitalized.

Attachment:- Audit objectives question.rar