Your client company has specified control procedures for approving supplier invoices for payment, for signing cheques, for keeping records, and for reconciling the bank chequing accounts. The procedures are well specified and well placed in operations. As senior auditor on the engagement, you need to specify a program (list) of control test to audit the effectiveness of the controls over cash payments.

Required:

Using the following general internal control objectives,

1. Briefly state how the specific control objective is achieved.
2. Specify at least two control tests to audit the effectiveness of the typical control procedures.

Organize your list using the following format:

Control Objective

1. Classification

2. Accounting

3. Proper period

(a) Specific control objective to achieve

1.

2.

3.

(b) Control Tests

1. a.) b.)

2. a.) b.)

3 a.) b.)