Requirement c. For each control, identify an audit procedure that could be used to test the control for effectiveness. (Audit procedures may be used more than once.) (Click the icon to view the audit procedures to test controls.) 1 Test of Control Internal Controls Test of Control 1. Approved purchase orders are required for all acquisitions of goods. Prenumbered receiving reports are prepared as support for acquisitions and 2. numerically accounted for. Dates on receiving reports are compared with vendors' invoices before entry into the 3. acquisitions journal. 0 0 a. Account for a numerical sequence of receiving reports. b. Examine approved purchase orders for a sample of acquisitions. c. Examine cancelled checks for signature. d. Examine indication of reconciliation of the master file and control account. 0 4. Account classifications are reviewed by someone other than the preparer. 0 0 e. Examine supporting documents for indication of cancellation. 5. Vendors' invoices are recalculated before payment. 6. All checks are signed by the owner or manager The authorized signer compares data on supporting documents with checks and 7. electronic funds transfer authorizations. - 0 f. Examine vendors' invoices for indication of comparison. g. Examine vendors' invoices for indication of internal verification. C . h. Examine vendors' invoices for indication of recalculation. 8. Checks are mailed by the owner or a person under her supervision after signing. All supporting documents are cancelled after checks are signed or electronic funds 9. transfers are approved. The accounts payable master file is updated, balanced, and reconciled to the general 10. ledger monthly. i. Observe check mailing procedures and inquire about normal procedures. Print Done