The following are 11 audit procedures taken from an auditprogram:1. Foot the accounts payable trial balance and compare the total with the general ledger.2. Confirm accounts payable balances directly with vendors.3. Account for a sequence of checks in the cash disbursements journal to determinewhether any have been omitted.4. Examine vendors’ invoices to verify the ending balance in accounts payable.5. Compare the balance in payroll tax expense with previous years. The comparisontakes the increase in payroll tax rates into account.6. Examine the internal auditor’s initials on monthly bank reconciliations as anindication of whether they have been reviewed.7. Examine vendors’ invoices and other documentation in support of recorded transactions in the acquisitions journal.8. Multiply the commission rate by total sales and compare the result with commissionexpense.9. Examine vendors’ invoices and other supporting documents to determine whetherlarge amounts in the repair and maintenance account should be capitalized.10. Discuss the duties of the cash disbursements clerk with him and observe whether hehas responsibility for handling cash or preparing the bank reconciliation.11. Inquire about the accounts payable supervisor’s monthly review of a computergenerated exception report of receiving reports and purchase orders that have notbeen matched with a vendor invoice.a. Indicate whether each procedure is a test of control, substantive test of transactions,analytical procedure, or a test of details of balances.b. Identify the type of evidence for each procedure.
The following are 11
program:
1. Foot the accounts payable
2. Confirm accounts payable balances directly with vendors.
3. Account for a sequence of checks in the cash disbursements journal to determine
whether any have been omitted.
4. Examine vendors’ invoices to verify the ending balance in accounts payable.
5. Compare the balance in payroll tax expense with previous years. The comparison
takes the increase in payroll tax rates into account.
6. Examine the internal auditor’s initials on monthly bank reconciliations as an
indication of whether they have been reviewed.
7. Examine vendors’ invoices and other documentation in support of recorded transactions in the acquisitions journal.
8. Multiply the commission rate by total sales and compare the result with commission
expense.
9. Examine vendors’ invoices and other supporting documents to determine whether
large amounts in the repair and maintenance account should be capitalized.
10. Discuss the duties of the cash disbursements clerk with him and observe whether he
has responsibility for handling cash or preparing the bank reconciliation.
11. Inquire about the accounts payable supervisor’s monthly review of a computergenerated exception report of receiving reports and purchase orders that have not
been matched with a vendor invoice.
a. Indicate whether each procedure is a test of control, substantive test of transactions,
analytical procedure, or a test of details of balances.
b. Identify the type of evidence for each procedure.
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