An Entity Erroneously Recorded a Large Purchase Twice

question 72

Multiple Choice

An entity erroneously recorded a large purchase twice. Which of the following internal controls would be most likely to detect this error in a timely and efficient manner?

• A)Footing the purchases journal.
• B)Reconciling vendors' monthly statements with subsidiary payable ledger accounts.
• C)Tracing totals from the purchases journal to the ledger accounts.
• D)Sending written quarterly confirmations to all vendors.

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Definitions:

Market for Human Organs

The controversial concept or practice involving the buying and selling of human organs for transplantation, often debated for ethical and moral reasons.

Volunteer-Donor System

A system in which goods, services, or time are given by volunteers or donors without financial compensation.

Market-Based System

An economic system where decisions regarding investment, production, and distribution are based on supply and demand, and prices of goods and services are determined in a free price system.

Human Organs

Parts of the human body that perform vital functions necessary for life, such as the heart, liver, and kidneys, which can sometimes be medically transplanted.