Requirement a$.$ Indicate whether each procedure is a test of control, substantive test of transactions, substantive analytical procedure, or a test of details of balances.

Procedure

Type of Test

Discuss the duties of the cash disbursements clerk with him and observe whether

he has responsibility for handling cash or preparing the bank reconciliation.

Examine the internal auditor's initials on monthly bank reconciliations as an

indication of whether they have been reviewed.

Account for a sequence of checks in the cash disbursements journal to determine

whether any have been omitted.

Examine vendors' invoices and other supporting documents to determine whether

large amounts in the repair and maintenance account should be capitalized.

Inquire about the accounts payable supervisor's monthly review of a computer$-$

generated exception report of receiving reports and purchase orders that have

not been matched with a vendor invoice.

Foot the accounts payable trial balance and compare the total with the general

ledger.

Confirm accounts payable balances directly with vendors.

Examine vendors' invoices to verify the ending balance in accounts payable.

Compare the balance in payroll tax expense with previous years. The comparison

takes the increase in payroll tax rates into account.

Examine vendors' invoices and other documentation in support of recorded

transactions in the acquisitions journal.

Multiply the commission rate by total sales and compare the result with

commission expense.