The following questions concern the audit of accounts payable.
a. For effective internal control, the accounts payable department generally should
(1) stamp, perforate, or otherwise cancel supporting documentation after payment is mailed.
(2) ascertain that each requisition is approved as to price, quantity, and quality by an authorized employee.
(3) omit information about the quantity ordered on the copy of the purchase order forwarded to the receiving department prior to receipt of goods.
(4) establish the agreement of the vendor’s invoice with the receiving report and purchase order.
b. When using confirmations to provide evidence about the completeness assertion for accounts payable, the appropriate population most likely is
(1) vendors with whom the entity has previously done business.
(2) amounts recorded in the accounts payable subsidiary ledger.
(3) payees of checks drawn in the month after year-end.
(4) invoices filed in the entity’s open invoice file.
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