An auditor discovered the following matters while performing tests of controls 1.An invoice for goods received from Company for P10,000 was paid, but the client never ordered the goods. Required: a.What control would have prevented or detected each of the above misstatements? b.What test should the auditor perform to test the control? c.To which financial statement assertion does the misstatement relate?
An auditor discovered the following matters while performing tests of controls 1.An invoice for goods received from Company for P10,000 was paid, but the client never ordered the goods. Required: a.What control would have prevented or detected each of the above misstatements? b.What test should the auditor perform to test the control? c.To which financial statement assertion does the misstatement relate?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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An auditor discovered the following matters while performing tests of controls
1.An invoice for goods received from Company for P10,000 was paid, but the client never ordered the goods.
Required:
a.What control would have prevented or detected each of the above misstatements?
b.What test should the auditor perform to test the control?
c.To which financial statement assertion does the misstatement relate?
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