To Ensure the Completeness of Purchases Made During the Year

question 9

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 inventory from the inventory records and check that the inventory is held in stock.

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Definitions:

Kickbacks

The return of a portion of the money exchanged in a transaction as a secret payment, often as a bribe, for services rendered or to influence decisions.

Ethics Centre

A resource and meeting place that promotes ethical behavior and decision-making within an organization or community.

Ethical Mindfulness

The practice of being consciously aware of the ethical implications and consequences of our actions in everyday life.

Largely Negative

A term describing predominately negative outcomes, perceptions, or attitudes.