An Auditor Traced a Sample of Purchase Orders and the Related

question 175

Multiple Choice

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

• A) Identify unusually 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:

Individualist Cultures

Societies where personal achievements and independence are emphasized over group goals.

Collectivist Cultures

Refers to societies that prioritize the group over individual interests, emphasizing family ties, social cohesion, and interdependence.

Experience Dissonance

A psychological phenomenon where there is a conflict between one's beliefs and behaviors, often causing discomfort that leads to an attempt to reduce the inconsistency.

Induced Compliance

A psychological phenomenon where individuals change their attitudes or beliefs to align with their externally influenced behaviors, especially in situations causing cognitive dissonance.