The auditor selected a sample of 5 purchases to test ABC Company's purchasing process and controls for the fiscal year ended June 30, 2022. For each purchase in the sample, the auditor verified that required approvals were documented, the approval occurred before the purchase, and the approval came from the appropriate personnel according to ABC Company's internal purchasing policy. The results of the auditor's testing are documented below, with any exceptions noted in red. Based on the testing performed, the auditor will draw a conclusion on whether purchasing procedures and controls are functioning as designed.
The auditor selected a sample of 5 purchases to test ABC Company's purchasing process and controls for the fiscal year ended June 30, 2022. For each purchase in the sample, the auditor verified that required approvals were documented, the approval occurred before the purchase, and the approval came from the appropriate personnel according to ABC Company's internal purchasing policy. The results of the auditor's testing are documented below, with any exceptions noted in red. Based on the testing performed, the auditor will draw a conclusion on whether purchasing procedures and controls are functioning as designed.
The auditor selected a sample of 5 purchases to test ABC Company's purchasing process and controls for the fiscal year ended June 30, 2022. For each purchase in the sample, the auditor verified that required approvals were documented, the approval occurred before the purchase, and the approval came from the appropriate personnel according to ABC Company's internal purchasing policy. The results of the auditor's testing are documented below, with any exceptions noted in red. Based on the testing performed, the auditor will draw a conclusion on whether purchasing procedures and controls are functioning as designed.
The auditor selected a sample of 5 purchases to test ABC Company's purchasing process and controls for the fiscal year ended June 30, 2022. For each purchase in the sample, the auditor verified that required approvals were documented, the approval occurred before the purchase, and the approval came from the appropriate personnel according to ABC Company's internal purchasing policy. The results of the auditor's testing are documented below, with any exceptions noted in red. Based on the testing performed, the auditor will draw a conclusion on whether purchasing procedures and controls are functioning as designed.
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Note to Participant: Fields highlighted in yellow must be completed during this simulatio
First, review the test details outlined below to familiarize yourself with the test work to be pe direct you to the appropriate source documentation to perform the respective attribute test
Workpaper Name: Purchasing Process Control Test
Workpaper Reference: XX.XX (To correspond to indexing within workpaper file.)
Auditor Name: Date of Test Work:
Scope Overview: To test ABC Company's purchasing process and controls.
Testing Period (Cut-off): Fiscal Year Ended June 30, 2022 (Period spanning July 1, 2021-June 30, Based on the documented process outlined in the Planning section of t Sample Size Selection: surrounding the purchase/procurement process. The resulting sample
Purpose: To determine whether procedures and controls are functioning as desi
For each item within the sample, the auditor tested against the defined
Based on the auditor's review of the internal policy, the below attribute Procedure: a) Approval: When applicable (per Purchasing Policy), verify that requir b) Approval Timing: Verify that the purchase request and approval occu c) Approval from Direct Supervisor: Purchase approval was requested f
Test Work Performed: See documented results below. Any exceptions identified in red.
Selected Sample
Name of Employee Sample Selection # Purchase Amount Vendor Name Requesting Purchase 1 $ 4,000.00 Betty's Diner Kelly Smith 2 $ 10,500.00 Worldwide Computers Mike Jones 3 $ 15,000.00 Top Talent Consultants Dave White 4 $ 20,000.00 Software Solutions Kathy Wood 5 $ 12,500.00 Brownstone Restaurant Mary Thompson
Results:
Conclusion: during this simulation.
he test work to be performed, then utilize the documentation provided with this task (as outlined in ro ective attribute tests.
rkpaper file.)
and controls. nning July 1, 2021-June 30, 2022) in the Planning section of these audit workpapers, auditor randomly selected five purchases from the Cash ledger to test the procedures a cess. The resulting sample of five purchases is shown below.
rols are functioning as designed and to determine whether any control weaknesses in control design exist.
r tested against the defined procedures and controls outlined within ABC Company's internal Purchasing Policy.
l policy, the below attributes were highlighted for testing:
ng Policy), verify that required approvals are supported by adequate documentation (i.e., Purchasing Portal Screenshot). request and approval occurred before purchase. e approval was requested from, and provided by, the appropriate personnel (direct supervisor of requestor).
ons identified in red.
Note: Document "N/A" within the subsequent fields if, based on review of the documented Purchasin Per Purchasing Portal Per Internal Policy TEST RESULT Screenshot
Evidence of Approval Manager Approval Role of Employee Available within Purchasing Required? Requesting Purchase (Y/N) Portal? (Y/N) Name of Direct Supervisor who Provided Approval Associate Manager Senior Manager Director Senior Associate task (as outlined in row 35) to
dger to test the procedures and controls
y.
reenshot).
of the documented Purchasing Process, no supervisor approval is deemed necessary (i.e., "N/A" response within Column F). Per Internal Purchasing Per Organizational Chart TEST RESULT Portal
Management Approval Date of Employee Purchase Direct Supervisor of Obtained by Appropriate Request Requesting Employee Person? (xx/xx/xxxx) (Y/N) N/A" response within Column F). Per Purchasing Portal Per Vendor Invoice TEST RESULT Screenshot
Direct Supervisor Approval
Date of Approval Date Purchase Made Occurred Prior to Purchase? (xx/xx/xxxx) (Y/N)
