Reference no: EM132553985

Question 1. 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 verfying accounts payable balance? Why?

Question 2. What are the four key internal controls for the acquisition and payment cycle? Briefly explain the procedures in place that would suggest these controls are followed effectively.

Question 3. Explain the relationship between accounts payable and expenses and its influence on analytical procedures for accounts payable.

Question 4. Describe factors the auditor should consider in developing an expectation for depreciation while performing substantive analytical procedure for depreciation expense.

Question 5. What is an accrued liability? List some common examples of accrued liabilities recorded by companies.