An Example of a Vouching Procedure Might Be _______

question 99

Multiple Choice

An example of a vouching procedure might be _______.

• A)the auditor vouching the quantities on a sales invoice to the quantities on underlying shipping documents, the existence of a bill of lading, and prices to the sales order.
• B)the auditor vouching the quantities on a sales invoice to the quantities on underlying shipping documents, the occurrence of a bill of lading, and prices to the sales order.
• C)requesting the internal audit function vouch the accuracy of all sales transactions.
• D)confirming with the client's legal counsel that there is no litigation outstanding

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Definitions:

Future Economic Benefits

The capability to assist in the direct or indirect increase of cash and cash equivalents for an organization.

Economic Entity Assumption

An accounting principle that assumes a company and its owners are separate entities for recording and reporting financial transactions.

Basic Assumption

Fundamental principles underlying the preparation of financial statements, typically including economic entity, going concern, monetary unit, and periodic reporting.

Corporate Form

The structure of a corporation, recognized by law as a single entity separate from its owners, with its own rights, privileges, and liabilities.