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

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Definitions:

Price Volatile

describes a market condition where prices fluctuate unpredictably and often, which can affect buying and selling decisions.

Premium Products

Goods of higher quality and price than regular items, often offering superior performance or prestige.

Higher Costs

Situations where the expenses associated with producing goods or services increase, which can impact profit margins and overall profitability.

Increased Quality

The enhancement or improvement of product standards, performance, or service over time.