ASSIGNMENT
7-30 (OBJECTIVE 7-4) The following are various audit procedures performed to satisfy
specific transaction-related audit objectives as discussed in Chapter 6. The general
transaction-related audit objectives from Chapter 6 are also included.
Audit Procedures
1. Trace from receiving reports to vendors’ invoices and entries in the acquisitions
journal.
2. Add the sales journal for the month of July and trace amounts to the general ledger.
3. Examine expense voucher packages and related vendors’ invoices for approval of
expense account classification.
4. Observe opening of cash receipts to determine that cash receipts are promptly
deposited and recorded.
5. Ask the accounts payable clerk about procedures for verifying prices, quantities,
and extensions on vendors’ invoices.
6. Vouch entries in sales journal to sales invoices and related shipping documents.
7. Examine the footnotes about the company’s policies for recording revenue transactions to determine whether the disclosures are understandable.
General Transaction-Related Audit Objectives
Occurrence Posting and Summarization Presentation
Completeness Classification
Accuracy Timing
a. Identify the type of audit evidence used for each audit procedure.
b. Identify the general transaction-related audit objective or objectives satisfied by each
audit procedure.
7-31 (OBJECTIVE 7-4) The following audit procedures were performed in the audit of inventory
to satisfy specific balance-related audit objectives as discussed in Chapter 6. The audit pro-
cedures assume that the auditor has obtained the inventory count sheets that list the client’s
inventory. The general balance-related audit objectives from Chapter 6 are also included.
