Question
18-29 (Objective 18-3) perform the testing. 1. The company issues voucher numbers in sequential order. Use the transaction file to determine whether there are any
18-29 (Objective 18-3) perform the testing. 1. The company issues voucher numbers in sequential order. Use the transaction file to determine whether there are any gaps or duplicates in the voucher sequence. 2. All acquisitions are supported by receiving reports. Identity any gaps or duplicates in the sequence of receiving reports, and any acquisitions not supported by a receiving report. 3. Summarize acquisitions by customer number. The company is required to disclose all vendors who represent greater than 5 percent of acquisitions of the year. Identify the vendor number, name, and amount of purchases for any vendor that meets the disclosure criteria. 4. Verify that all acquisitions in the transaction file are from authorized vendors included in the vendor master file. 5. Identify vendors in the vendor file that are not included in the acquisition file. These vendors may be included in a sample of zero-balance confirmations at year end. Required a. Indicate the audit objective(s) (or assertions) tested by each of the five audit procedures listed above. b. Document any exceptions identified in your testing, including associated document numbers. c. Assume your initial assessment of control risk was low for each of the seven transaction-related audit objectives. Based on the exceptions found, indicate which audit objective(s) should have an increase in control risk. Please explain and answer a,b and c
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