In testing cash disbursements for Immanuel Klein Ltd., you perform minimum tests of 15 transactions as a means of assessing control risk. In your tests, you discover the following exceptions:

1. Two items in the acquisitions journal have been misclassified.

2. Three invoices had not been initialed by the controller, but there were no dollar misstatements evident in the transactions.

3. Five receiving reports were recorded in the acquisitions journal at least two weeks later than their date on the receiving report.

4. One invoice had been paid twice. The second payment was supported by a duplicate copy of the invoice. Both copies of the invoice had been marked "paid."

5. One cheque amount in the cash disbursements journal was for $100 less than the amount stated on the vendor's invoice.

6. One voided cheque was missing.

7.Two receiving reports for vendors' invoices were missing from the transaction packet. One vendor's invoice had an extension error, and the invoice had been initialed to verify that the amount had been checked.
Required

a. Identify whether each of exceptions 1 through 7 was a control test deviation, a monetary error or fraud and other irregularities, or both.

b. For each exception, identify which transaction-related audit objective was not met.

c. What is the audit importance of each of these exceptions?

d. What follow-up procedures would you use to determine more about the nature of each exception?

e. How would each of these exceptions affect the balance of your audit? Be specific.

f. Identify internal controls that should have prevented each misstatement.