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 supplier invoices, vendor master file changes, shipment of goods to customers
D) processing purchase orders, vendor master file changes, receiving goods and services

Question

Quizplus · Accepted Answer

The acquisition and payment cycle deals with the purchase of goods and services, processing of invoices from vendors, and payment of these invoices. Processing purchase orders, changes in the vendor master file, and receiving goods and services are all part of this cycle. Payment for raw materials, receipt of raw materials, and shipment of goods to customers are part of the inventory and warehousing cycle. Processing sales orders, production of goods for clients, and subsequent invoicing are part of the revenue cycle. Processing supplier invoices, vendor master file changes, and shipment of goods to customers are not a cohesive process cycle.

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