It usually takes more time to audit the acquisition and payment cycle than any other cycle because:
A) there is a greater likelihood of lawsuits against the auditor relating to these accounts.
B) internal controls in this area are usually weaker.
C) there is a greater possibility of fraud in these transactions.
D) of the large number of time-consuming accounts affected.

Question

Quizplus · Accepted Answer

The acquisition and payment cycle involves a large number of accounts including purchases, accounts payable, cash disbursements, and expenses. Auditing these accounts requires significant time and effort as there may be a large volume of transactions to review and test. Additionally, the audit team may need to perform extensive procedures to determine the completeness, accuracy, and validity of the transactions. While fraud is a concern in this cycle, it is not the main reason for the extended audit time. Internal controls may also be weaker in this area, but again, this is not the primary reason for the longer audit duration.

It Usually Takes More Time to Audit the Acquisition and Payment