With Respect to a Small Company's System of Purchasing Supplies

question 116

Multiple Choice

With respect to a small company's system of purchasing supplies, an auditor's primary concern should be to obtain satisfaction that supplies ordered and paid for have been

• A) requested by and approved by the same individual.
• B) used in the course of business and solely for business purposes during the year under audit.
• C) received, counted, and checked to quantities and amounts on purchase orders and invoices.
• D) properly recorded as assets and systematically amortized over the estimated useful life of the supplies.

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Definitions:

Acquired

Something gained or obtained through experience, actions, or being subjected to certain conditions over time.

Pyloric Stenosis

A condition in newborns where the opening from the stomach to the small intestine thickens, obstructing food movement.

Visible Peristalsis

The observable wave-like muscle contractions of the abdomen, moving contents along the gastrointestinal tract.