Alpine Bags Ltd. December 31, 2023 Testing of purchasingaudit program

Audit program item

Tick marks

Initials

Date

References

1. Complete the following tests and document your testing on the evidence provided and in the relevant working paper table.

A102

(a) For each supplier invoice, match the quantity invoiced to the quantity received by Alpine Bags and recorded on the receiving report and on the purchase order.

A

(b) For each supplier invoice, recalculate the cost of each line item.

B

(c) For each supplier invoice, recalculate the total cost of the invoice.

C

(d) For each supplier invoice and receiving report, check that the correct dollar amount is recorded in the purchases journal.

D

(e) For each entry in the purchases journal, ensure it is recorded in the correct nancial period.

E

2. Document the misstatements found and make a conclusion as to whether the account is materially misstated.

A103

3. List the correcting journal entries that should be completed.

A104

APPENDIX 6 PURCHASE ORDERS

Alpine Bags Ltd. Alpine Bags Ltd. Purchase order #: 1777 Purchase order #: 1708 Supplier name: Abacus Computers Supplier name: Corporate Express Order date: April 15, 2023 Order date: March 31, 2023

Qty Item Qty Item 3 Laptop computer 4 Box 24 mechanical pencils 2 Laptop computer 8 Reflex letter paper - box (5 reams) 1 Laptop computer

Approved: Carla Johnson Approved: Julie Sek Position: Financial Controller Position: Office Manager Date: April 15, 2023 Date: March 31, 2023

Alpine Bags Ltd. Alpine Bags Ltd. Purchase order #: 1875 Purchase order #: 1525 Supplier name: Corporate Express Supplier name: Alpine Bags China Order date: December 15, 2023 Order date: July 19, 2023

Qty Item Qty Item 1 Box 24 mixed pens 500 Maximum Speed - Tan 2 Box 24 mixed pens 299 Thunder 75 - Yellow 5 Shipping labels - box 137 Thunder 75 - Multi

Approved: Julie Sek Approved: Mark Russell Position: Office Manager Position: Sales Manager Date: December 15, 2023 Date: July 19, 2023

Alpine Bags Ltd. - An Audit Case Study ACCT 442 CC01 Winter 2022 - Student Package 5

RECEIVING REPORTS

Alpine Bags Ltd. Alpine Bags Ltd. Receiving report #: 1791 Receiving report #: 1709 Date received: May 26, 2023 Date received: May 26, 2023 Purchase order #: 1777 Purchase order #: 1708 Qty Item Qty Item 3 Laptop computer 4 Box 24 mechanical pencils 2 Laptop computer 8 Reflex letter paper - box (5 reams) 1 Laptop computer

Received: Frank Bell Received: Frank Bell Position: Warehouse Supervisor Position: Warehouse Supervisor

Alpine Bags Ltd. Alpine Bags Ltd. Receiving report #: 1744 Receiving report #: 1614 Date received: January 6, 2024 Date received: August 22, 2023 Purchase order #: 1875 Purchase order #: 1525 Qty Item Qty Item 1 Box 24 mixed pens 500 Maximum Speed - Tan 2 Box 24 mixed pens 299 Thunder 75 - Yellow 5 Shipping labels - box 137 Thunder 75 - Multi

Received: Frank Bell Received: Frank Bell Position: Warehouse Supervisor Position: Warehouse Supervisor

Alpine Bags Ltd. - An Audit Case Study ACCT 442 CC01 Winter 2022 - Student Package 5

SUPPLIER INVOICES

Abacus Computers 11001 College Avenue Alpine Bags Ltd. Toronto, Ontario PO Box 123 Invoice #: 290471 Toronto, Ontario L5B 6L1 Item Qty Price Cost Laptop computer 3 549.00 1,647.00 Laptop computer 2 549.00 1,098.00 Laptop computer 1 549.00 549.00

Due date: June 27, 2023 Subtotal 3,294.00

Corporate Express 61 rue Jalbert Alpine Bags Ltd. Montreal, Quebec PO Box 123 Invoice #: 124850 Toronto, Ontario L5B 6L1 Item Qty Price Cost Box 24 mechanical pencils 4 2.95 11.80 Reflex letter paper - box (5 reams) 8 24.95 199.60

Due date: June 30, 2023 Subtotal 211.40

Corporate Express 61 rue Jalbert Alpine Bags Ltd. Montreal, Quebec PO Box 123 Invoice #: 228272 Toronto, Ontario L5B 6L1 Item Qty Price Cost Box 24 mixed pens 1 3.58 3.58 Box 24 mixed pens 2 3.58 7.16 Shipping labels - box 5 72.98 364.90

Due date: February 7, 2024 Subtotal 375.64 May 27, 2023

May 30, 2023

January 7, 2024

Alpine Bags Ltd. - An Audit Case Study ACCT 442 CC01 Winter 2022 - Student Package 5

Alpine Bags Ltd. PO Box 123 Alpine Bags Ltd. Toronto, Ontario PO Box 123 Invoice #: 259896 Toronto, Ontario L5B 6L1 Item Qty Price Cost Maximum Speed - Tan 500 77.00 38,500.00 Thunder 75 - Yellow 299 89.00 26,611.00 Thunder 75 - Multi 137 89.00 12,193.00

Due date: September 24, 2023 Subtotal 77,304.00

Position: Warehouse Supervisor

EXTRACT FROM ALPINE BAGS LTD. PURCHASES JOURNAL As at December 31,2023

May. 30, 2023 Office Equipment 3,294.00

Accounts Payable 3,294.00

May. 31, 2023 Office Expenses 211.40

Accounts Payable 211.40

Jan. 8, 2024 Office Expenses 375.64

Accounts Payable 375.64

Aug. 29, 2023 Inventory 77,304.00

Accounts Payable 77,304.00