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    Tests and Procedures for Sales, Payroll, Acquisition Cycles

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    How are the tests of controls, substantive tests of transactions, and analytical procedures for the sales and collection cycle, payroll and personnel cycle, and acquisition and payment cycle similar? How do the cycles differ?

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    The tests are all similar in that they create audit evidence that support the common assertions for every business cycle (occurrence, completeness, authorization, accuracy, cutoff and classification, rights and obligations, and valuation/allocation). In other words, most of the auditors work is in assembling and reviewing the adequacy of the evidence to see ...

    Solution Summary

    Your tutorial is brief, giving you the general idea in 203 words and indicates how auditing the business processes are similar and how they differ.