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Risks for the Audit of the Acquisition

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What are the most important risks for the audit of the acquisition and payment cycles in the automotive industry? Compare and contrast the risks for the automotive industry with another industry of your choice.

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The risk for the audit of an acquisition are examined.

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Comparing risks for the audit of the acquisition and payment cycles for the automotive industry and the retailing industry:

The acquisition and payment cycle includes activities from identifying of products to be purchased, purchasing them and the way payment is made for the products. The important risks for the audit of the acquisition and payment cycles in the automotive industry include material misstatements of the inventory, accounts payable, expenses or cost of goods sold accounts due to the high volume of inventory purchases that often occur in the automotive industry through purchase of numerous different part components from different vendors; fraud risk issues that may occur during the acquisition and payment cycle which includes theft of inventory by ...

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