Which of the following areas are tested as part of the audit of the acquisition and payment cycle?
A)payment for raw materials,receipt of raw materials,shipment of goods to customers
B)processing of sales orders,production of goods for clients,and subsequent invoicing
C)processing vendor invoices,vendor master file changes,shipment of goods to customers
D)processing purchase orders,processing cash disbursements,receiving goods and services

Question

Quizplus · Accepted Answer

The acquisition and payment cycle involves the process of purchasing goods and services, and subsequently paying for them. This includes processing purchase orders, receiving goods and services, processing vendor invoices and making cash disbursements. Option A relates to the raw material purchase cycle, Option B relates to the sales cycle and Option C relates to the shipping cycle.

Which of the Following Areas Are Tested as Part of the Audit