You Are Auditing the Company's Purchasing Process for Goods and Services.You

question 75

Multiple Choice

You are auditing the company's purchasing process for goods and services.You are primarily concerned with the company not recording all purchase transactions.Which audit procedure below would be the most effective audit procedure in this case?

• A)Vouching from the accounts payable account to the vendor invoices
• B)Tracing vendor invoices to recorded amounts in the accounts payable account
• C)Confirmation accounts payable recorded amounts
• D)Reconciling the accounts payable subsidiary ledger to the accounts payable account

---

Definitions:

Perceived Bias

The belief that an individual, group, or process is unfairly prejudiced or displaying partiality, regardless of whether this is true.

Arbitrator's Acceptability

The degree to which the parties involved in a dispute accept the arbitrator's decision as fair and binding.

Managerial Intervention

Actions taken by managers to address issues or challenges within a team or organization, aiming to improve performance or resolve conflicts.

Consultant Activities

The range of services and actions performed by consultants, aimed at advising and aiding clients in achieving their objectives.