Tests of Controls for the Occurrence Assertion for Purchases Include

question 19

Multiple Choice

Tests of controls for the occurrence assertion for purchases include all of the following except:

• A)evaluating proper segregation of duties.
• B)testing a sample of vouchers for an authorized purchase order.
• C)testing a sample of vouchers for matching receiving reports.
• D)tracing a sample of vouchers to purchases journal.

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Definitions:

States of Nature

Hypothetical conditions that represent possible scenarios or outcomes in decision making and probabilistic analysis.

EMV

Refers to Expected Monetary Value, a decision-making tool used in risk management to quantify potential losses or gains in financial terms.

Factory Profits

Refers to the net income generated from manufacturing operations after deducting all operational costs and expenses.

High Demand

A market condition where the desire for a product or service significantly exceeds its supply or availability.