The controls over acquisitions included in the perpetual inventory records are normally tested as a part of the test of controls and substantive tests of transactions for the sales and collection cycle.

Question

Quizplus · Accepted Answer

The controls over acquisitions are normally tested as a part of the test of controls and substantive tests of transactions for the purchases and disbursements cycle, not the sales and collection cycle.

The Controls Over Acquisitions Included in the Perpetual Inventory Records