Question 12 A. The auditors need to test the key control procedures in the client's purchasing transaction cycle. List four examples of test of this cycle (8 marks) Describe the six procedures performed by the auditors during their observation of a client's physical inventory (12 marks) B. Question 13 A. Plant and equipment are not as inherently risky as are other assets, such as inventories and accounts receivable. List three differences in the audit of current assets and the audit of property, plant and equipment (6 marks) List and describe four major controls applicable to plant and equipment (4 marks) B. Question 14 A: List two examples of test of controls in accounts payable audit (4 marks) B: A major concern of the auditors is obtaining evidence about the completeness of recorded accounts payable 1). Describe the reason that the auditors are concermed with the completeness of accounts payable (2 marks) 2). Describe two ways in which the auditors establish the completeness of accounts payable (4 marks) Question 12 A. The auditors need to test the key control procedures in the client's purchasing transaction cycle. List four examples of test of this cycle (8 marks) Describe the six procedures performed by the auditors during their observation of a client's physical inventory (12 marks) B. Question 13 A. Plant and equipment are not as inherently risky as are other assets, such as inventories and accounts receivable. List three differences in the audit of current assets and the audit of property, plant and equipment (6 marks) List and describe four major controls applicable to plant and equipment (4 marks) B. Question 14 A: List two examples of test of controls in accounts payable audit (4 marks) B: A major concern of the auditors is obtaining evidence about the completeness of recorded accounts payable 1). Describe the reason that the auditors are concermed with the completeness of accounts payable (2 marks) 2). Describe two ways in which the auditors establish the completeness of accounts payable (4 marks)