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:

Minimum Cost

The least amount of financial expenditure required to achieve a particular objective, often essential for budgeting and financial planning.

Messenger

An individual or service that conveys messages or communicates information between parties.

Encoding

The process of converting information or data into a specific format for efficient processing, storage, or transmission.

Credibility

The quality or power of inspiring belief; the perceived reliability and trustworthiness of a source or message.