Examine invoices recorded in the repair and maintenance accounts to determine if any should be capitalized.

For each audit procedue, select the appropriate audit objective from the drop down list. The objectives associated with each letter are included at the bottom of this page. Objective Procedure Trace receiving reports to related invoice and entry in purchases journal to 1. b. determine that existing purchases are recorded. Examine sales invoices selected from the sales journal immediately before and after 2. year end to determine if recorded in the proper period. Vouch recorded sales to sales invoice and related shipping document to support the 3 validity of sales Send written confirmations to customers to verify whether they have an 4. outstanding accounts receivable balance 5. Verify recorded fixed asset additions by physically examining the equipment. Examine sales invoices recorded in the sales journal to determine they are promptly 6. recorded. Add the purchases journal for the month of July and trace to amounts recorded in 7 the general ledger. For a sample of purchase transactions, determine whether department head has 8 approved accounting distribution. Add the client's listing of accounts receivable and agree to the balance per the 9 general ledger Examine invoices recorded in repair and maintenance account to determine if any 10. should be capitalized. Transaction objectives Balance objectives a. Occurrence g. Existence b . Completeness h. Completeness C . Accuracy i. Accuracy 2 Classification j. Classification e . Timing k. Cutoff f . Posting and summarization 1. Detail tie-in m. Realizable value