Question

What are some analytical procedures that auditors might perform associated with the acquisition cycle? What are some key substantive tests that auditors perform related to the acquisition cycle? Should auditors perform both?

Answer 1

some key substantive test that auditor must perform are whether existing acquisition are recorded or not (completeness),

whether aquisition are accurately recorded(accuracy)

acquistion are correctly classified(classification)

whether recorded acquisition are of goods and services which are received with best interest of client(existence)

acquisition are recorded at correct timings and properly dated

use of attribute sampling should be seen

yes the auditor needs to perform all the procedures and other procedures that helps in better understanding