Which of the Following Is a Procedure Used in an Audit

question 58

Multiple Choice

Which of the following is a procedure used in an audit where there is a heightened risk of fraud related to accounts payable and other related expense accounts?

• A)Send blank confirmations to vendors that ask them information about all outstanding invoices,payment terms,payment histories,and so forth.
• B)Scan journals for unusual or large year-end transactions and adjustments.
• C)Obtain and examine documentation for payments of invoices that are for amounts just under the limit that typically requires some level of approval.
• D)All the above.

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Definitions:

Marketer-Controlled Sources

Marketer-controlled sources refer to the channels and content fully controlled by the marketer, such as company websites, press releases, and branded advertising materials, used to communicate with the audience.

Information Search

The process consumers undertake to gather information about products or services to make informed purchasing decisions.

Consumer Demand

The desire and willingness of consumers to purchase goods or services at a given price, which influences market dynamics and business decisions.

Wants

Desires or wishes that are not essential for basic survival but are sought for pleasure, comfort, or luxury.