CH10acquisitionandexpenditurecycleincludingauditofaccountspayableandinventoryexistence分析.ppt

Chapter 10 acquisition and expenditure cycle including audit of accounts payable and inventory existence 1.Typical activities (1)purchasing goods and services. (2)paying the bills. Authorization custody recording periodic reconciliation Segregation of responsibility authorization Custody recording reconciliation (1)Authorization A.PURCHASES ARE REQUESTED. B.purchasing department seeks the best prices and quality,issues a purchase order. obtaining competitive bids. C.cash disbursements are authorized (order,invoices,internal receiving reports) D.cheques are sighed(over a certain amount, 2; vouchers be marked “paid”---付讫） (2)custody A.inspect the good received (a receiving report). B.put in the hands(other responsible person) C.cash “custody” rest largely,authorized to sign cheques. D.access to blank documents. Forge a false purchase order to fictitious vendor, receiving report, invoice, company cheque, supplier (3)recording A.TIME: PERCHASE ORDER,INVOICE, RECEIVING REPORT ARE IN HAND. B. DR: inventory, fixed asset,expense account CR:ACCOUNTS PAYABLE C. DR: ACCOUNTS PAYABLE CR:CASH (4)periodic reconciliation EXISTING ASSETS TO RECORDED AMOUNT (账实核对） A.inventory on hand, perpetual inventory records B.book cash balance, bank cash balance C.fixed assets, detail records D.detail of accounts payable, the control account. E.internal audit confirmation of accounts payable to compare vender`s report to recorded liabilities . 2.audit evidence in management reports (1)open purchase orders market prices have fallen below (2)unmatched receiving reports material unrecorded liability (3)unmatched vendor invoice compare to (2) material unrecorded liability (4)accounts payable trial balance List by vendor control ac invoice (5)purchases journal Sample selection of transactions for detail test of controls audit of supporting document for validity,authorization,accurac