Question
Typical questions that might appear on internal control questionnaire for accounts payable: 1. Are monthly from vendors reconciled with the accounts payable listing? 2. Are
Typical questions that might appear on internal control questionnaire for accounts payable: 1. Are monthly from vendors reconciled with the accounts payable listing? 2. Are vendors invoices matched with receiving reports before they are approved for payment?
Describe the purpose of each of the above internal control activities.
Describe the manner in which each of the above procedures must be tested.
Assuming that the operating effectiveness of each of the above procedures is found to be inadequate, describe how the auditors might alter their substantive procedures to compensate for the increased level of risk of material misstatement.
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