Kelompok 3 – Accounting 6B:

Cherie Donella 13202010048

Gabriela Sheryl Ongkie 13202010016
Juniwati Waruhu 13202010040
Lelapika Sitanggang 13202010042
Nur Ainun Hasibuan 13202010044
Stefany 13202010050

18-17 (OBJECTIVES 18-1, 18-2, 18-3, 18-5) The following audit procedures were planned by Jack
Kaguri, CPA, in the audit of the acquisition and payment cycle for DeWitt Products, Inc.:
1. Review the acquisitions journal for large and unusual transactions.
a. Analytical Procedure
b. Substantive analytical procedure
c. Occurrence, accuracy, Classification
d. Existence, accuracy, Classification
2. Examine invoices and related shipping documents included in the client’s unpaid in-voice
file at the audit report date to determine whether they were recorded in the
ap-propriate accounting period and at the correct amounts.
a. Inspection
b. Test of details of balances
c. Completeness and accuracy
d. Cutoff, Completeness and accuracy
3. Select a sample of 20 acquisitions from the acquisitions journal and trace each to
re-lated vendors’ invoices. Examine whether each transaction appears to be a legitimate
expenditure for the client and that each was approved and recorded at the correct
amount and date in the journal and charged to the correct account per the chart of
accounts.
a. Inspection
b. Test of control and substantive test of transaction
c. Occurrence and accuracy
d. Timing, classification
4. Use audit software to foot the acquisitions journal for one month and trace the total to
the general ledger.
a. Recalculation
b. Substantive test of control
c. Posting and summarization
d. Detail tie in
5. Send letters to several vendors, including a few for which the recorded accounts
pay-able balance is zero, requesting them to inform us of their balance due from DeWitt.
Ask the controller to sign the letter.
a. Confirmation
b. Test of details of balance
c. Completeness and accuracy
d. Existence and cut off
6. Examine a sample of receiving report numbers and determine whether each purchase
was recorded as an account payable.
a. Inspection
b. Test of control
c. Completeness
d. Completeness
7. Select a sample of equipment listed on fixed asset master files and inspect the asset to
determine that it exists and to determine its condition.
a. Physical examination
b. Test of details of balance
c. Occurrence
d. Realizable value, existence, detail tie in
8. Calculate the ratio of equipment repairs and maintenance to total equipment and
compare with previous years.
a. Analytical procedure
b. Analytical procedure
c. Accuracy, existence, completeness
d. Existence, Completeness, and Accuracy
9. Obtain from the client a written statement that all mortgages payable have been
included in the current period financial statements and have been accurately recorded
and that the collateral for each is included in the footnotes.
a. Inquiries of the client
b. Test of details of balance
c. Completeness
d. Accuracy and completeness
10. Recalculate the portion of insurance premiums on the client’s prepaid insurance
schedule that is applicable to future periods.
a. Recalculation
b. Test of detail balance
c. Accuracy
d. Accuracy
a. For each procedure, identify the type of evidence being used.
b. For each procedure, identify whether it is a substantive analytical procedure, a test of control,
a substantive test of transactions, or a test of details of balances.
c. For each test of control or substantive test of transactions, identify the transaction-related
audit objective(s) being met.
d. For each test of details of balances, identify the balance-related audit objective(s) being met.