Provide responses to each of the following statements. Find supporting literature to make your

arguments. Please provide references for any source used.

1. Describe the acquisition and expenditure cycle, including typical source documents.

2. Identify significant accounts and relevant assertions related to the acquisition and

expenditure cycle.

3. Discuss the risk of material misstatement in the acquisition and expenditure cycle.

4. Apply your knowledge to perform audit procedures in the acquisition and expenditure cycle

and evaluate the findings of your tests.