It usually takes more time to audit the acquisition and payment cycle than any other cycle because:
A) there is a greater possibility of fraud in these transactions.
B) internal controls in this area are usually weaker.
C) of the large number of time- consuming accounts affected.
D) there is a greater likelihood of lawsuits against the auditor relating to these accounts.

Question

Quizplus · Accepted Answer

The acquisition and payment cycle involves a large number of time-consuming accounts and transactions, such as purchase orders, receiving reports, invoices, and payments. These transactions may also involve multiple parties, such as vendors, employees, and bank accounts, which can add complexity to the audit process. Therefore, it takes more time to audit this cycle compared to other cycles. While fraud and weak internal controls can also contribute to the complexity of the audit, the sheer volume of accounts affected is the primary reason for the longer audit time. Lawsuits against auditors are not directly related to the length of the audit process.

It Usually Takes More Time to Audit the Acquisition and Payment