The Overall Objective in the Audit of the Acquisition and Payment

question 74

Multiple Choice

The overall objective in the audit of the acquisition and payment cycle is

• A) to ensure the reliability of the affected accounts.
• B) to ensure the accuracy of the affected accounts.
• C) to evaluate whether the affected accounts are fairly presented in accordance with accounting standards.
• D) to evaluate whether fraudulent payments were made.

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Definitions:

Injured Bystanders

Individuals who suffer harm or injury as a result of the actions or negligence of others, and who were not directly involved in the situation or activity causing the harm.

Warranty Of Merchantability

An implied assurance that a product sold by a merchant meets certain quality and usability standards.

Horizontal Privity

refers to a legal relationship in property law, especially regarding real covenants or easements, where the parties deriving benefits and obligations from a covenant have a mutual or successive relationship to the same piece of land.

Express Warranty

A written or spoken promise from a seller to a buyer about the quality or condition of a product, offering assurance that it meets certain standards.