In a Test of Controls, Auditors May Trace Receiving Reports

question 18

Multiple Choice

In a test of controls, auditors may trace receiving reports to vouchers recorded in the voucher register. This is a test for

• A)occurrence.
• B)completeness.
• C)classification.
• D)cutoff.

---

Definitions:

Acquisition Cost

The total cost incurred to acquire an asset, including purchase price and other expenses directly related to the acquisition.

Forward Contract

A forward contract is a customizable financial agreement between two parties to buy or sell an asset at a specified price on a future date.

Futures Contract

A legal agreement to buy or sell a particular commodity or financial instrument at a predetermined price at a specified time in the future.

Contract Price

The agreed amount of money for the exchange of goods, services, or property specified in a contract.