2. ACQUISITION AND EXPENDITURE CYCLE

3. ELEMENTS OF THE ACQUISITION AND EXPENDITURE CYCLE BALANCES –ACCOUNTS PAYABLE –NOTES PAYABLE –PREPAID ASSETS –INVENTORY –FIXED ASSETS –ACCUMULATED DEPRECIATION –VARIOUS EXPENSES

4. TRANSACTIONS –PURCHASING OF GOODS AND SERVICES –CASH DISBURSEMENTS –PURCHASE RETURNS –DEPRECIATION –ACQUISITION OF PROPERTY, PLANT, AND EQUIPMENT

5. AUDIT OBJECTIVES EXISTENCE AND OCCURRENCE COMPLETENESS RIGHTS AND OBLIGATIONS VALUATION OR ALLOCATION PRESENTATION AND DISCLOSURE

6. INTERNAL CONTROL OBTAIN AN UNDERSTANDING –CONTROL ENVIRONMENT –RISK ASSESSMENT –CONTROL ACTIVITIES –INFORMATION AND COMMUNICATION –MONITORING

7. DOCUMENT UNDERSTANDING –FLOWCHARTS –NARRATIVES –INTERNAL CONTROL QUESTIONNAIRE

8. ASSESS CONTROL RISK –INQUIRE –INSPECT –REVIEW –OBSERVE –VOUCH, TRACE –SCAN –RECALCULATE –REPERFORM –ATTRIBUTE SAMPLING

9. SUBSTANTIVE AUDIT PROCEDURES ANALYTICAL REVIEW –REVIEW FOR LARGE OR UNUSUAL BALANCES –CALCULATE RATIOS AND RELATIONSHIPS –COMPARE TO PRIOR PERIODS, INDUSTRY, BUDGETS, NONFINANCIAL DATA

10. CASH EXISTENCE – COUNT –CONFIRM COMPLETENESS –INTERBANK TRANSFERS –KITING

11. RIGHTS –INQUIRY –MINUTES –CLIENT REPRESENTATION –CONFIRM RESTRICTIONS VALUATION –TEST BANK RECONCILIATION –CUTOFF BANK STATEMENT

12. PRESENTATION AND DISCLOSURE –RESTRICTIONS –COMPENSATING BALANCES –OVERDRAFTS –SAVINGS ACCOUNTS –CERTIFICATES OF DEPOSIT

13. ACCOUNTS PAYABLE EXISTENCE –REVIEW DOCUMENTS –CONFIRMATIONS COMPLETENESS –DOCUMENT TRACING –SEARCH FOR UNRECORDED LIABILITIES –CONFIRMATIONS

14. OBLIGATIONS –DOCUMENTS –INQUIRY –CLIENT REPRESENTATION LETTER VALUATION –DOCUMENT VOUCHING –SUBSEQUENT CASH PAYMENTS –RECALCULATE

15. PRESENTATION AND DISCLOSURE –TRADE, NONTRADE –CURRENT, NONCURRENT

16. INVENTORY EXISTENCE –PHYSICAL OBSERVATION –CONFIRMATIONS COMPLETENESS –DOCUMENTS –RELATE TO SALES CUTOFF

17. RIGHTS –DOCUMENTS –INQUIRY –CLIENT REPRESENTATION LETTER –CONSIGNED –LIENS –COMMITMENTS –CONTRACTS

18. VALUATION –VOUCH –RECALCULATE –OBSOLETE, SLOW-MOVING, DAMAGED –SPECIALIST –LOWER OF COST OR MARKET –FIFO/LIFO

19. PRESENTATION AND DISCLOSURE –M–METHOD OF VALUATION –L–LIENS, PLEDGES –S–SALES AND PURCHASE COMMITMENTS