16) The pending sales orders can be reviewed for evidence of the ________ of recorded ________ and ________.

17) The test of controls for purchases, cash disbursements, and accounts payable include the following audit procedures. Next to each of the procedures, indicate the related transaction assertion.

Test of Controls Transaction Assertion

1. Select a sample of receiving reports and trace to 1. ____________

inventory record posting of additions.

2. Vouch a sample of receiving reports 2. ____________

to related purchase orders.

3. Trace a sample of voucher debits to general 3. ____________

and subsidiary ledger accounts.

4. Scan a sample of vouchers for missing numbers. 4. ____________

5. Selct a sample of open accounts payable and 5. ____________

vouch to supporting documents of purchase.

6. Trace debits arising from accounts payable 6. ____________

transactions for proper account.

7. Test a sample of cash disbursement voucher 7. ____________

documents for accurate mathematics.

18) The test of controls for payroll includes the following audit procedures. Next to each of the procedures, indicate the related management assertion about transactions.

Test of Controls Transaction Assertion

1. Trace payroll information to management 1. ____________

reports and to general ledger account postings.

2. Obtain control of a periodic payroll and conduct 2. ____________

a surprise distribution of paychecks.

3. Select a sample of personnel files and trace 3. ____________

pay rate and deduction information to payroll

department files.

4. Trace cost accounting labor cost distributions to 4. ____________

management reports and postings in general

ledger accounts.

5. Selct a sample of payroll register entries and 5. ____________

recalculate gross pay, deductions, and net pay.

6. Selct a sample of cost accounting analyses 6. ____________

and vouch to time records.

7. Select a sample of clock time cards and trace 7. ____________

to payroll register.

8. Select a sample of personnel files and trace 8. ____________

pay rate to union contracts.