When the Auditors Select a Sample from the Vouchers Payable

question 44

Multiple Choice

When the auditors select a sample from the vouchers payable register at the end of the period and trace them to underlying documents,the auditors are gathering evidence primarily to support that:

• A)Recorded obligations were paid.
• B)Incurred obligations were recorded in the correct period.
• C)Recorded obligations occurred prior to year-end.
• D)Cash disbursements were recorded as incurred obligation.

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Definitions:

Operating Expenses

Expenses that a company incurs during its normal business operations.

Cost of Goods Sold

Direct expenditures related to the production of a company's goods, comprising both materials and labor.

Retained Earnings

The portion of a company's profit that is held or retained and saved for future use, investment, or debt repayment, rather than being paid out to shareholders.

Common Shares

Equity investments that represent ownership interests in a corporation, entitling holders to dividends and voting rights.