asment$4.$The following questions concern accumulating evidence in

the acquisition and payment cycle. Choose the best response.

a $.$ In auditing accounts payable, an auditor$$s procedures most likely will focus primarily

on management$$s assertion of

$(1)$ existence.

$(2)$ realizable value.

$(3)$ completeness.

$(4)$ valuation and allocation.

b $.$ Which of the following audit procedures is best for identifying unrecorded trade

accounts payable?

$(1)$ Examining unusual relationships between monthly accounts payable balances

and recorded cash payments.

$(2)$ Reconciling vendors$$ statements to the file of receiving reports to identify items

received just prior to the balance sheet date.

$(3)$ Reviewing cash disbursements recorded subsequent to the balance sheet date to

deter mine whether the related payables apply to the prior period.

$(4)$ Investigating payables recorded just prior to and just subsequent to the balance

sheet date to determine whether they are supported by receiving reports.

c $.$ An auditor traced a sample of purchase orders and the related receiving reports to

the acquisitions journal and cash disbursements journal. The purpose of this sub

stantive test of transactions most likely was to

$(1)$ identify unusually large purchases that should be investigated further.

$(2)$ verify that cash disbursements were for goods actually received.

$(3)$ determine that purchases were properly recorded.

$(4)$ test whether payments were for goods actually ordered.