General Specific

1. Existence or Occurrence 1. Recorded acquisitions are for

items that were acquired.

2. Completeness 2. Acquisitions that occurred are

recorded.
3. Recorded acquisitions are the
3. Rights and Obligations entity’s purchases and
liabilities.

4. Valuation or Allocation 4. Acquisitions are recorded for

the proper amounts.
5. Acquisitions are recorded to
5. Presentation and result in presentation and
Disclosure disclosure in accordance with
PAS/PFRS.
 A purchase order is made for goods that have not been
authorized or requested.
 Goods are ordered but delivered to an inappropriate
address and stolen.
 A bookkeeper prepares a check to himself and records it
as having been issued to a major supplier.
 A purchase is recorded when an invoice is received from a
vendor and recorded again when a duplicate invoice is
sent by the vendor.
 Purchase of merchandise erroneously recorded as
purchase of equipment.
 Creditor is paid twice when bookkeeper fails to reconcile
postings in the AP subsidiary ledger with creditor’s
statement of account.
 Purchases journal “closed early” with this period’s
purchases recorded as having occurred in subsequent
period.
 Assertions
1. Existence or Occurrence
2. Completeness
3. Rights and Obligations
4. Valuation or Allocation
5. Presentation and Disclosure
Audit Procedures
Examine underlying documents
for authenticity and
reasonableness.
Trace a sequence of receiving
reports to entries in the voucher
register.
Trace from invoices to perpetual
inventory records.
Recompute invoices and
compare invoice price to
purchase order.
Check accuracy of accounts on
invoices by reference to chart of
accounts.