Question
A division of your company purchased a large quantity of new desktop computers during the current fiscal year. The companys purchasing policy requests pre-approved purchase
A division of your company purchased a large quantity of new desktop computers during the current fiscal year. The companys purchasing policy requests pre-approved purchase requests be sent to purchasing department before generating PO. The policy also specifies who are authorized to approve the purchase request, who are authorized to issue PO, and the corresponding amount threshold. Vendor invoices are forwarded directly to Accounts Payable department for payments and filings. An internal audit manager has asked you to audit the process used to acquire the computers. He also wants you to determine whether the computers have been used properly and accounted for correctly. The manager specified a set of audit objectives to guide your tests. If the manager wants you to determine whether the amounts at which the computers are recorded are correct, what would be the most appropriate audit procedure(s) to achieve this objective?
Select one:
a. Trace the recorded amount to the actual computers purchased
b. Trace the vendor invoices to accounting record
c. Vouch recorded amount to vendor invoices
d. Vouch the PO to approved purchase receipts and invoices
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