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:

Natural Resource

Materials or substances such as minerals, forests, water, and fertile land that occur in nature and can be used for economic gain.

Consumer Income

The total earnings or financial inflow that an individual receives from various sources, including wages, investments, and benefits, which determines their purchasing power.

Serious Public Concern

A matter that is of significant interest or worry to the general public often requiring government attention or action.

Oil Depletion

The reduction of available oil resources due to extraction and consumption over time.