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

  1. Recorded cash disbursement transactions are for the amount of goods or services received and are correctly recorded.
  2. Cash disbursement transactions are properly included in the accounts payable master file and are correctly summarized.
  3. Recorded cash disbursements are for goods and services actually received.
  4. Cash disbursement transactions are properly classified.
  5. Existing cash disbursement transactions are recorded.
         Management Assertion about Classes of TransactionsGeneral Transaction-Related Audit Objective
                  1. Occurrence

2. Completeness

3. Accuracy

4. Classification

5. Cutoff

                  6. Occurrence

7. Completeness

8. Accuracy

9. Posting and summarization

10. Classification

11. Timing

  1. Cash disbursement transactions are recorded on the correct dates.

Required

  1. 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.
  2. For each specific transaction-related audit objective, identify the appropriate management assertion.
  3. For each specific transaction-related audit objective, identify the appropriate general transaction-related audit objective.

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