6-27 (Objectives 6-6, 6-7) The following are specific transaction-related audit objectives applied to the audit of cash disbursement transactions (a through f), management assertions about classes of transactions (1 through 5), and general transaction-related audit objectives (6 through 11).
Specific Transaction-Related Audit Objective
- Recorded cash disbursement transactions are for the amount of goods or services received and are correctly recorded.
- Cash disbursement transactions are properly included in the accounts payable master file and are correctly summarized.
- Recorded cash disbursements are for goods and services actually received.
- Cash disbursement transactions are properly classified.
- Existing cash disbursement transactions are recorded.
|Management Assertion about Classes of Transactions||General Transaction-Related Audit Objective|
| 1. Occurrence|
| 6. Occurrence|
9. Posting and summarization
- Cash disbursement transactions are recorded on the correct dates.
- Explain the differences among management assertions about classes of transactions and events, general transaction-related audit objectives, and specific transaction-related audit objectives and their relationships to each other.
- For each specific transaction-related audit objective, identify the appropriate management assertion.
- For each specific transaction-related audit objective, identify the appropriate general transaction-related audit objective.