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.

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Definitions:

Fraction

A mathematical expression representing the division of one quantity by another, noted by a numerator divided by a denominator.

Marginal Revenue Product

The additional revenue generated by employing one more unit of a resource or input.

Marginal Cost

The additional cost of producing one more unit of a good or service.

Competitive Labor Market

A market where numerous employers are actively seeking to hire and numerous individuals are seeking employment, with wages determined by the supply and demand for labor.