An Entity's Internal Control Requires for Every Check Request That

question 10

Multiple Choice

An entity's internal control requires for every check request that there be an approved voucher,supported by a prenumbered purchase order,and a prenumbered receiving report.To determine whether checks are being issued for unauthorized expenditures,an auditor most likely would select for testing from the population of:

• A)Purchase orders.
• B)Canceled checks.
• C)Receiving reports.
• D)Approved vouchers.

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Definitions:

Father-Son-Grandson Configuration

A hierarchical arrangement often used in genealogy, databases, or organizational structures to represent relationships.

Worksheet Process

A methodical procedure involving spreadsheets or worksheets used in planning, accounting, or financial analysis.

Consolidated Financial Statements

Financial statements that combine and present the financial position, results of operations, and cash flows of a parent and its subsidiaries as one single entity.

Excess Fair Value

The amount by which the fair value of an asset exceeds its carrying amount on the balance sheet.