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4 Cards in this Set
- Front
- Back
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Acquisition and Expenditure cycle- inherent risks
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-Misstated costs and expenses
-Debt and payroll top reasons for financial restatement. - Also, improperly recognizing costs, capitalizing expenditures, and accounting for taxes -unrecorded liabilities and noncancelable purchase agreements |
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Steps in cycle
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Purchase
Receive Record asset/expense Pay |
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Accounts used as a result of this cycle
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Inventory
PPE Pre-paid exp Liabilities A/P Cash Intangible Assets |
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Audit evidence generated by this cycle
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Open Purchase orders
Unmatched receiving reports unmatched vendor invoices Accts (vouchers) payable trial balance Purchase journal Fixed asset report |
