An Audit Client Erroneously Recorded a Large Purchase Twice

question 26

Multiple Choice

An audit client erroneously recorded a large purchase twice. Which of the following tests of control measures would be most likely to detect this error in a timely and efficient manner?

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

---

Definitions:

Coffee Sales

Transactions that involve the buying and selling of coffee products to consumers or businesses.

Total Revenue

The total amount of money generated from the sale of goods or services by a company before any expenses are deducted.

Total Revenue

The total amount of money received by a company from sales of goods or services before any expenses are subtracted.

Price Elasticity

A measure of how much the quantity demanded or supplied of a good changes in response to a change in its price.