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    Design tests of controls, substantive tests of transactions,

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    Design tests of controls, substantive tests of transactions, and analytical procedures for the acquisition and payment cycle.

    © BrainMass Inc. brainmass.com October 10, 2019, 3:24 am ad1c9bdddf
    https://brainmass.com/business/mergers-and-acquisitions/design-tests-of-controls-substantive-tests-of-transactions-419237

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    Design tests of controls, substantive tests of transactions, and analytical procedures for the acquisition and payment cycle.

    The main methodology that will be used in designing tests for the acquisition and payment cycle is a test design to specifically test accounts receivable balances. Before doing so, the auditor must understand the control environment surrounding the task. The acquisitions and cash disbursements process at the company must be understood. The auditor can gain a comprehensive understanding of the process in several ways, including by examination of the company's internal source documents, and by performing walk-through tests for acquisitions and cash disbursements.

    The auditor can ...

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    Design tests of controls, substantive tests of transactions, and analytical procedures for the acquisition and payment cycle.

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