Which of the Following Types of Evidence Would Be Considered

question 69

Multiple Choice

Which of the following types of evidence would be considered most reliable in the audit of accounts payable?

• A)review of internal budgets for the period under audit
• B)inquiry of management with respect to recent purchases
• C)inspection of client purchase orders
• D)inspection of supplier invoices

---

Definitions:

Bonus Pool

A fund allocated for bonuses, typically based on company performance, and distributed to employees based on predetermined criteria.

Fixed Percentage

A specified, constant proportion or rate that does not change with variation in base quantities, often used in financial contexts like interests or commissions.

Deferred Profit-Sharing Plans

A type of profit-sharing plan where contributions are deferred and placed in a trust for the employee until a set time, often retirement.

Quasi Pension Plans

Programs that mimic traditional pension plans but typically offer more flexibility and are often funded by the employees, sometimes with employer contributions.