John Is Auditing MegaCorp

question 28

Multiple Choice

John is auditing MegaCorp.He finds an accounts payable for 10,000 cases of ball bearings.He checks to make sure the paper actually arrived and that the receiving department had signed and dated the invoice.He also checks the original purchase order to make sure the purchase was properly authorized.This illustrates

• A)tracing.
• B)vouching.
• C)following.
• D)monitoring.

---

Definitions:

Commission

A fee paid for services, usually a percentage of the total transaction.