Auditing Ch 8 terms

The flashcards below were created by user Seifer on FreezingBlue Flashcards.

  1. approved vendor list
    a record of vendors that have been vetted to ensure that vendors meet company policy and procedure in terms of price, quality, delivery, etc. This control activity provides evidence to auditors of vendor existence
  2. bill of lading
    contract between the shipper and the carrier. bills of lading include shipping information including ship dates and origination, purchase order number, and signatures for receipt of merchandise
  3. capitalizing
    recording expenditures as assets and charging them to expense by a systematic allocation over a number of year
  4. electronic data interchange (EDI)
    the transfer of data between different companies using networks such as the internet
  5. matching
    recognizing expenses in the same period as associated revenues
  6. purchase order
    formal contractual document (may be a computer document) between a buyer and seller issued by a buyer establishing price, delivery point, delivery dates, and other information pertinent to the purchase
  7. purchase requisition
    internal document initiated by a department or persons within the entity asking the purchasing department to buy specific goods or services
  8. receiving report
    documentation completed by the receiving department that includes receiving date and time, purchase order number, condition of material received, and amount of material received. Document provides evidence regardng the receipt of materials by the entity
  9. search for unrecorded liabilities
    a substantive procedure to test the completeness assertion for liability errors
  10. substantive test of transactions
    a test of a sample of transactions during the period for monetary errors
  11. vendor's invoice
    bill sent from the vendor to the entiry purchasing the goods or services
  12. voucher/voucher package
    A document used as a source for recording payables. it shows approvals, accounts, and amounts to be recorded, usually attached to the supporting purchase order, receiving report, and vendor invoice
Card Set:
Auditing Ch 8 terms
2012-03-25 20:41:34
Auditing Assurance Louwers

Acquisition and expenditure cycle
Show Answers: