An Entity's Internal Control Structure Requires for Every Check Request

question 45

Multiple Choice

An entity's internal control structure requires for every check request that there be an approved voucher, supported by a prenumbered purchase order and a prenumbered receiving report. To determine whether checks are being issued for unauthorized expenditures, an auditor most likely would select items for testing from the population of all

• A)purchase orders.
• B)canceled checks.
• C)receiving reports.
• D)approved vouchers.

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Definitions:

New Model Army

A highly disciplined and effective military force organized in 1645 by the Parliamentarians during the English Civil War, contributing significantly to their victory over the Royalists.

Society of Friends

Also known as Quakers, this is a Christian denomination known for its commitment to peace, simplicity, and equality.

Navigation Acts

A series of laws that were enacted by the British Parliament in the 17th century to regulate trade and commerce between England and its colonies.