审计学（英文）_18 AUDIT OF THE ACQUISITION AND PAYMENT CYCLE (1/2)

Chapt ter 18 p AUDIT OF THE ACQUISITION AND PAYMENT CYCLE: TESTS OF CONTROLS. SUBSTANTIVE TESTS OF TRANSACTIONS AND ACCOUNTS PAYABLE FALSE PURCHASES CAMOUFLAGE OVERSTATED PROFITS Arens, Loebbecke, Auditing, &/E @2000 Prentice hall. Inc

Arens, Loebbecke; Auditing, 8/E ©2000 Prentice Hall, Inc. Chapter 18 AUDIT OF THE ACQUISITION AND PAYMENT CYCLE: TESTS OF CONTROLS, SUBSTANTIVE TESTS OF TRANSACTIONS, AND ACCOUNTS PAYABLE FALSE PURCHASES CAMOUFLAGE OVERSTATED PROFITS

Accounts and classes offransactions in the Acquisition and payment cycle I. Acquisition of goods and services 2. Cash disbursements 3. Purchase returns and allowances and purchase discounts @2000 Prentice hall. Inc

Arens, Loebbecke; Auditing, 8/E ©2000 Prentice Hall, Inc. Accounts and Classes of Transactions in the Acquisition and Payment Cycle 1. Acquisition of goods and services 2. Cash disbursements 3. Purchase returns and allowances and purchase discounts

Accounts in the acquisition and payment cycle Cash in bank Raw material purchases Accounts payable FIGUrE 18- Acquisitions Purchase returns Property, plant, and allowances and equipment di Purchase discounts Prepaid expenses Manufacturing expense Selling expense Administrative expense control account control account control account Subsidia Commissions Travel expense Officers travel Repair and maintenance livery expense Legal fees Ing reight in @2000 Prentice hall. Inc

Arens, Loebbecke; Auditing, 8/E ©2000 Prentice Hall, Inc. FIGURE 18 -1 Accounts in the Acquisition and Payment Cycle

BUSINESS FUNCTIONS IN THE CYCLE AND RELATED DOCUMENTS AND RECORDS e Processing Purchase Orders Purchase Requisition Purchase order Receiving goods and Services Recognizing the liability Acquisitions Journal Summary Acquisitions report Vendor 's invoice Debit memo Voucher Accounts Payable master file Accounts Payable Trial Balance Vendor's statement Check Arens, Loebbecke, Auditing, &/E I Cash Disbursements Journal @2000 Prentice hall. Inc

Arens, Loebbecke; Auditing, 8/E ©2000 Prentice Hall, Inc. BUSINESS FUNCTIONS IN THE CYCLE AND RELATED DOCUMENTS AND RECORDS  Processing Purchase Orders Purchase Requisition Purchase Order  Receiving Goods and Services  Recognizing the Liability  Acquisitions Journal  Summary Acquisitions Report  Vendor’s Invoice  Debit Memo  Voucher  Accounts Payable master file  Accounts Payable Trial Balance  Vendor’s Statement  Check  Cash Disbursements Journal

fable- Classes of Transactions Accounts Business functions and Related Documents and records for the acquisition and Payment Cycle Classes of transactions Accounts Business functions Documents and records Acquisitions Inventory Processing purchase orders Purchase requisition Property, plant, and equipment Purchase order Prepaid Leasehold improvements Accounts payable Manufactu Selling expenses Administrative expense Receiving goods and services Receiving report Recognizing the liability Acquisitions journal Summary acquisitions report Vendor' s invoice Debit memo Accounts payable master file Accounts payable trial balance Vendor' s statement Cash disbursements Cash in bank(from cash Processing and recording cash Check disbursements) disbursements Cash disbursements journal Accounts payable Purchase discounts @2000 Prentice hall. Inc

Arens, Loebbecke; Auditing, 8/E ©2000 Prentice Hall, Inc. FABLE 18 -1 Classes of Transactions, Accounts, Business Functions, and Related Documents and Records for the Acquisition and Payment Cycle

Understand internal control FIGURE 18-2 acquisitions and cash disbursements Methodology for Designing Assess planned control risk一 Tests of Controls and acquisitions and cash disbursements Substantive Tests of Transactions for Evaluate cost-benefit Acquisition and of testing controls Payment Cycle Design tests of controls Audit Procedures and substantive tests of transactions for Sample size acquisitions and cash disbursements to meet Items to select transaction-related Arens, Loebbecke, Auditing, &/E @2000 Prentice hall. Inc audit objectives Timing

Arens, Loebbecke; Auditing, 8/E ©2000 Prentice Hall, Inc. FIGURE 18 - 2 Methodology for Designing Tests of Controls and Substantive Tests of Transactions for Acquisition and Payment Cycle

Understand Internal Contro The auditor gains an understanding ofinternal control for the acquisition and payment cycle by studying the client's flowcharts preparinginternal control questionnaires, and performing wal through tests for acquisitions and cash disbursements. Arens, Loebbecke, Auditing, &/E @2000 Prentice hall. Inc

Arens, Loebbecke; Auditing, 8/E ©2000 Prentice Hall, Inc. The auditor gains an understanding of internal controlfor the acquisition and payment cycle by studying the client’sflowcharts, preparing internal control questionnaires,and performing walk￾through tests for acquisitions and cash disbursements

Authorization of purchases Separation of asset Custody from Other functions Timely recording and Independent review of Transactions Authorization of Payments Arens, Loebbecke, Auditing, &/E @2000 Prentice hall. Inc

Arens, Loebbecke; Auditing, 8/E ©2000 Prentice Hall, Inc. Authorization of Purchases Separation of Asset Custody from Other functions Timely Recording and Independent Review of Transactions Authorization of Payments

yallatebosi-Benei identify the key internal controls and weaknesses and assess control risk. It is then appropriate to decide whether substantive tests will be reduced sufficiently to justify the cost of performing tests of controls Arens, Loebbecke, Auditing, &/E @2000 Prentice hall. Inc

Arens, Loebbecke; Auditing, 8/E ©2000 Prentice Hall, Inc. Identify the key internal controls and weaknesses and assess control risk. It is then appropriate to decide whether substantive tests will be reduced sufficiently to justify the cost of performing tests of controls

Design Tests of Controls an Substantive Tests Transactions for acquisitions Recorded acquisitions are for Goods and services received Consistent with the best Interests of the client (existence) Existing Acquisitions Are recorded (completeness) Acquisitions Are Accurately recorded(accuracy) Acquisitions Are Correctly Classified(Classification) Arens, Loebbecke, Auditing, &/E @2000 Prentice hall. Inc

Arens, Loebbecke; Auditing, 8/E ©2000 Prentice Hall, Inc. Design Tests of Controls and Substantive Tests of Transactions for Acquisitions Recorded Acquisitions are for Goods and Services Received, Consistent with the Best Interests of the Client (Existence) Existing Acquisitions Are Recorded (Completeness) Acquisitions Are Accurately Recorded (Accuracy) Acquisitions Are Correctly Classified (Classification)