You Are Concerned with Unrecorded Transactions in the Purchasing Cycle

question 60

Multiple Choice

You are concerned with unrecorded transactions in the purchasing cycle. Which audit procedure are you most likely to use when auditing purchases?

• A)Vouching transactions in accounting records to vendor invoices.
• B)Tracing vendor invoices to accounting records.
• C)Recalculation of vendor invoice amounts.
• D)Confirmation of customer accounts.

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Definitions:

Growth Rates

The percentage change of a specific variable over a certain period of time, often used to express the increase in size or value.

Central Location

A statistical measure that identifies a single value as representative of an entire data set; often the mean, median, or mode.

Extreme Values

The smallest or largest values in a data set, often used in analyzing data trends or outliers.

Negatively Skewed

Describes a distribution of numerical data where the left tail is longer or fatter than the right, showing that the majority of values are concentrated on the right side of the distribution.