In Order to Efficiently Test the Purchases/accounts Payable Cut-Off, an Auditor

question 40

Multiple Choice

In order to efficiently test the purchases/accounts payable cut-off, an auditor will be most likely to:

• A)compare cut-off reports with purchase orders.
• B)coordinate cut-off tests with physical inventory observation.
• C)coordinate mailing of confirmations with cut-off tests.
• D)compare vendors' invoices with vendors' statements.

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Definitions:

CPT Codes

Current Procedural Terminology codes, a set of medical codes used to report medical, surgical, and diagnostic procedures and services.

ICD Coding Rules

The standards and guidelines for using the International Classification of Diseases system to categorize and code patient diagnoses.

Reason Rule

Refers to the purpose or reason for doing a test or procedure, an insurance company criteria for reimbursement; the reason for the patient visit (encounter) is coded first. This is the primary diagnosis; any other issues the patient presents with (comorbidities) are coded next, in order of importance. This includes chronic conditions that must be considered or will be affected by the treatment for the primary diagnosis.

Indexing Rule

Guidelines or principles used in organizing, categorizing, and locating information or data systematically.