COMM 455 Chapter Notes - Chapter 10: High High, Documenta, Contingent Liability
Document Summary
Purchases are all recorded and not understated (completeness, cutoff) Payables that are derived from the purchases are fully recorded as a liability (completeness, valuation/allocation) Payroll expenses and associated deductions/liabilities are properly recorded as liabilities (completeness, occurrence, accuracy; completeness, Audit objective: to obtaining sufficient appropriate evidence about each significant financial statement assertion for the applicable transactions and balances. Purchase transactions relate to the purchase (from outside entities) of goods (including inventory and plant and equipment) and services (such as electricity and advertising) Payment transactions relate to the payment for such goods and services. Process of purchase transactions requisitioning goods and services preparing purchase orders receiving the goods storing goods received in inventory checking and approving the supplier"s invoice recording the liability. Purchase requisitions document issued by authorized person, detailing: pre-numbered, indicate the general ledger code(s) for the purchase, then sent to the purchasing department (occurrence)
