During the Development of a Purchasing System, an Auditor Reviewed

question 384

Multiple Choice

During the development of a purchasing system, an auditor reviewed the payment authorization program. Which of the following actions should the auditor recommend for a situation in which the quantity invoiced is greater than the quantity received?

• A) Issue an exception report.
• B) Pay the amount billed and adjust the inventory account for the difference.
• C) Return the invoice to the vendor for correction.
• D) Authorize payment of the full invoice, but maintain an open purchase order record for the missing goods.

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Definitions:

Injury

Harm or damage inflicted on a person's body, property, rights, or reputation.

Diversity of Citizenship

A legal principle allowing federal courts in the United States to hear cases involving parties from different states or countries.

Federal Court

A court established by the government of a country that deals with issues that concern the constitution or national laws.

Discernible Meaning

Able to be understood or perceived clearly; having a recognizable or understandable significance.