Reference no: EM132315776

Question

You are a graduate auditor of the 3P Limited (3P) audit engagement.

You have documented the following internal controls in place in 3P. For each of the internal control procedures below, state the key assertion addressed for the corresponding account provided.

Account | Internal control | Key Assertion

(1) Payroll expense: Human resources department to notify payroll department of any promotions and their effective date

(2) Accounts payable: Supplier invoices are matched against quantities on receiving reports and contract prices prior to being paid

(3) Travel expenses: Travel expenses incurred by each employee are reviewed by the relevant department manager on a monthly basis and compared to employee's calendars and travel plans.