ACCTG 403W Chapter 18 Audit of Acquisition and Payment Cycle Controls Transactions and Accounts Comprehensive Study Guide and Exam Review Material 2025/ 2026 Audit Procedures Internal Controls Accounts Payable Testing with Solution Updated Edition

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Study Guide.pdf


● ACCTG 403W Chapter 18 –
Audit of Acquisition & Payment
Cycle (Controls, Transactions
& Accounts Payable) Study
Guide




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,ACCTG 403W CH 18 Audit of the acquisition and payment cycle_ tests
ACCTG
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CH 18 Audit
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ACCTG
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1. acquisitions of goods and services What are the 3 classes of transactions in the acquisition and payment cycle?
2. cash disbursements
3. purchase returns and allowances and purchase
discounts


Accounts in the acquisition and payment cycle 1. cash
2. AP
3. purchase discounts
4. purchase returns and allowances
5. raw material purchases
6. PPE
7. Prepaid expenses
8. Administrative expense (control account)
9. Selling expense (control account)
10. manufacturing expense (control account)


1. Processing purchase orders What are the 4 business functions involved in the acquisitions and payment
2. receiving goods and services cycle?
3. recognizing the liability
4. processing and recording cash disbursement


Processing purchase orders Includes a purchase requisition which is used to request authorization for
goods or services and a purchase order which is used for the order after it has
been authorized.




ACCTG 403W CH 18 Audit of the acquisition and payment cycle_ tests
ACCTG
of controls,
403Wsubstantive
CH 18 Audit
tests
of the
of transactions,
acquisition and
andpayment
AP.pdf cycle_ tests
ACCTG
of controls,
403Wsubstantive
CH 18 Audit
tests
of the
of transactions,
acquisition and
andpayment
AP.pdf cycle_ tests of controls, substantive tests of transactions, and AP.pdf

, ACCTG 403W CH 18 Audit of the acquisition and payment cycle_ tests
ACCTG
of controls,
403Wsubstantive
CH 18 Audit
tests
of the
of transactions,
acquisition and
andpayment
AP cycle_ tests
ACCTG
of controls,
403Wsubstantive
CH 18 Audit
tests
of the
of transactions,
acquisition and
andpayment
AP.pdf cycle_ tests of controls, substantive tests of transactions, and AP.pdf




purchase requisition is used to request goods and services by an authorized employee


purchase order is a document used to order goods and services from vendors. It includes the
description, quantity, and related information for goods and services the
company intends to purchase and is often used to indicate authorization of the
acquisition.


Receiving goods and services Includes a receiving report which is prepared at the time the goods are
received




ACCTG 403W CH 18 Audit of the acquisition and payment cycle_ tests
ACCTG
of controls,
403Wsubstantive
CH 18 Audit
tests
of the
of transactions,
acquisition and
andpayment
AP.pdf cycle_ tests
ACCTG
of controls,
403Wsubstantive
CH 18 Audit
tests
of the
of transactions,
acquisition and
andpayment
AP.pdf cycle_ tests of controls, substantive tests of transactions, and AP.pdf