Identify and Describe Three Key Issues Relevant to the Audit

question 9

Essay

Identify and describe three key issues relevant to the audit of purchases, payables and payroll.

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Definitions:

Consumer Goods

Products bought and used by consumers rather than by manufacturers for producing other goods.

Capital Goods

Long-term assets used in the production of goods and services, such as machinery, buildings, and equipment.

Consumer Goods

Products that are bought for consumption by the average consumer.

Capital Goods

Long-lasting goods acquired by businesses to create goods and services, as opposed to being directly consumed by consumers.