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AUDIT True/False Questions 1.Because purchase requisitions may originate in any department, they are usually pre-numbered within each originating department. 2.The purchase requisition represents the start

AUDIT

True/False Questions

1.Because purchase requisitions may originate in any department, they are usually pre-numbered within each originating department.

2.The purchase requisition represents the start of the transaction trail of documentary evidence to support the completeness assertion.

3.A valid purchase requisition represents the authorization for the receiving department to accept goods delivered by suppliers.

4.For goods and services supplied on credit, the supplier is usually instructed by the purchase order to send the invoice directly to the accounts department.

5.Copies of unpaid suppliers' invoices are maintained in the purchasing department pending their subsequent payment.

6.In auditing accounts payable, the auditor relies primarily upon documents contained in the client's files.

7.Confirmation of accounts payable is recommended when detection risk is high, and for suppliers with which the entity undertook a smaller level of business during the period.

8.Like the confirmation of accounts receivable, confirmation of accounts payable is required.

9.Accounts payable confirmations do not normally specify the amount due.

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