Scribd
Upload
10 views7 pages

Test of Controls for Acquisitions

This document outlines tests of controls for acquisitions transactions at Happy Sounds Corporation. It lists specific controls related to existence or occurrence, completeness, rights and obligations, valuation or allocation, and presentation and disclosure of acquisitions. It then details audit procedures to test the controls, such as examining documents for authenticity, observing procedures, and tracing postings to the general ledger. The objective is to test whether the company's controls over acquiring and recording assets are operating effectively.

Uploaded by

Van Jasper Vienes
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
10 views7 pages

Test of Controls for Acquisitions

This document outlines tests of controls for acquisitions transactions at Happy Sounds Corporation. It lists specific controls related to existence or occurrence, completeness, rights and obligations, valuation or allocation, and presentation and disclosure of acquisitions. It then details audit procedures to test the controls, such as examining documents for authenticity, observing procedures, and tracing postings to the general ledger. The objective is to test whether the company's controls over acquiring and recording assets are operating effectively.

Uploaded by

Van Jasper Vienes
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

TEST OF CONTROLS:

ACQUISITIONS
GENERAL SPECIFIC

1. Existence or Occurence 1. Recorded acquisitions are for items


that were acquired.

2. Completeness 2. Acquisitions that occurred are


recorded.

3. Rights and Obligations 3. Recorded acquisitions are the entity's


purchases and liabilities.

4. Valuation or Allocation 4. Acquisitions are recorded for the


proper amounts.

5. Presentation and Disclosure Acquisitions are recorded to result in


presentation and disclosure in
accordance with PAS/PFRS.
DISCUSSION
A. Existence or Occurence
Controls Test of Controls
1. Acquisitions should be -Examine the approval signature
approved by authorized
personnel.

2. A voucher should be prepared -Observes the procedure


for the purchase of goods. This -Examines file of documents.
should be supported by properly -Review the entries in the
executed purchase requisition, purchases journal and examine
purchase order receiving report, the documents for authenticity
and vendor's invoice. and reasonableness
3. The check signer should - Examine cancellation on the
examine the supporting documents to test this controls
documentation and cancel the
documents, making them "paid"
or writing the date and number of
the check on the document.

B. Completeness
4. Prenumbered receiving reports -Observe the procedure and
should be used and accounted for account for the numerical
to determine that a liability is sequence of the receiving report
recorded for all goods received.

5. Vouchers are prenumbered and -Observe procedure and account


accounted for as they are entered for the numerical sequence of the
in the voucher registar. voucher
C. Rights and Obligations
6. Receiving reports should be -Observe that the procedure is
prepared by persons having being performed
access only to a blind copy of
purchase order details.

D. Valuation or Allocation
7. Invoice amounts are verified - Examine the voucher for
by a clerk by reference to the signature indicating performance
purchase orders and receiving
reports.
E. Presentation and Disclosure
8. Require employee to use a -Examine the chart of accounts
chart of accounts that adequately - Examine the signature of
describes accounts to be debited. employee performing the
Account coding is assigned by one checking or verification
person and checked by another.
Audit Program for Tests of Controls:
Acquisitions Transactions

Happy Sounds Corporation


Test of Controls: Acquisitions
December 31, 2018
Audit Procedures WP Ref By Date
1. For a sample of purchases,
exakine the reoated purchase
requisition and purchase order.
2. Check vendor invoice for
mathematical accuracy.
3. Trace posting frok the voucher
register to the general ledger.

You might also like