To Ensure the Completeness of Purchases Made During the Year

question 25

Multiple Choice

To ensure the completeness of purchases made during the year, the auditor should:

• A) select a sample of transactions from the accounts payable master file and vouch to related invoices.
• B) select a sample of invoices received before the year-end and ensure that they are appropriately recorded in the accounts payable master file.
• C) perform a bank reconciliation.
• D) select a sample of receiving reports before and after the year-end and ensure they have been appropriately recorded.

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Definitions:

Negligence

A failure to exercise the care that a reasonably prudent person would exercise in similar circumstances, often resulting in harm or damage.

Misconduct

Inappropriate or wrongful behavior by an employee that goes against the policies or expectations of the employer.

Conscientious Person

An individual who shows diligence, carefulness, and a high level of responsibility in their actions or work.

Dependable

A quality or trait of reliability and consistency in performance, actions, or decision-making, viewed as crucial in both personal and professional contexts.