Question

Below are five audit procedures, all of which are tests of transactions associated with the audit of the

acquisition and payment cycle. Also below are the six general transaction-related audit objectives and the
five management assertions. For each audit procedure, indicate (1) its audit objective, and (2) the
management assertion being tested.
Audit Objectives
A. Occurrence
B. Completeness
C. Accuracy
D. Posting and summarization
E. Classification
F. Timing
Assertions
V. Occurrence
W. Completeness
X. Accuracy
Y. Classification
Z. Cutoff
Foot the purchases journal and trace the totals to the related general ledger accounts.
(1) ________.
(2) ________.

Answer 1

The audit procedure of footing the purchases journal and tracing totals to the general ledger is related to the audit objective of Accuracy and tests the management assertion of Accuracy.

Step-by-step explanation:

When foot the purchases journal and trace the totals to the related general ledger accounts, the audit objective being addressed is C. Accuracy. This objective is concerned with ensuring that the amounts recorded in the purchases journal are calculated correctly and that they accurately reflect the total for the period. The management assertion being tested is X. Accuracy, which relates to the amounts and other data relating to transactions having been recorded appropriately and the transactions are recorded at their correct values.