Helen Found That the Expense Reports Were Not Properly Approved

question 63

Multiple Choice

Helen found that the expense reports were not properly approved while the senior accounts payable clerk was on vacation in July.Helen decided to perform a test of control on the authorization of expense reports for all the months except for July,which she will test substantively.Helen is allowed to do this because

• A)the authorized expense reports for July are not material.
• B)it would not be cost beneficial to test the entire population substantively.
• C)the authorizations for the month of July are not representative of the population as a whole.
• D)compensating controls exist in the payroll reconciliation process.

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Definitions:

Substantial Performance

Substantial performance refers to the completion of a nearly all terms of a contract or agreement, meeting the essential requirements despite minor deviations.

Paint Job

The application of paint to a surface, commonly referring to the process of painting vehicles or buildings for protective or aesthetic purposes.

Offer Of Performance

Offer of performance, in legal terms, is when a party involved in a contract demonstrates readiness and willingness to fulfill their obligations under the contract.

Conditional Contracts

Contracts that require certain conditions to be met before they can be fully enforceable or before an obligation to perform arises.