An Auditor Traced a Sample of Purchase Orders and the Related

question 50

Multiple Choice

An auditor traced a sample of purchase orders and the related receiving reports to the purchases journal. The purpose of this substantive audit procedure most likely was to

• A)identify usually large purchases that should be investigated further.
• B)verify that cash disbursements were for goods actually received.
• C)determine that purchases were properly recorded.
• D)test whether payments were for goods actually ordered.

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Definitions:

Critical Path

Identifies the longest sequence of dependent tasks in a project, determining the shortest possible duration to complete the project.

Gantt Chart

A visual tool in project management that displays a project schedule, showing the start and finish dates of elements and dependencies.

PERT Chart

A graphical tool used in project management to schedule, organize, and coordinate tasks within a project.

Early Start Dates

The earliest possible point in time when the activities of a project can begin, taking into account all constraints and preceding tasks.