While Undertaking the Audit of the Payables and Disbursements System

question 2

Multiple Choice

While undertaking the audit of the payables and disbursements system at Broil Ltd, you find that the internal control questionnaire indicates that an approved receiving report is required to accompany every cheque request for payment of merchandise.Which of the following tests of control would provide you with the greatest assurance that this control is operating effectively?

• A)Select and examine receiving reports and ascertain that the related voucher documents are dated no later than the receiving reports.
• B)Select and examine receiving reports and ascertain that the cancelled voucher documents are dated no earlier than the receiving reports.
• C)Select and examine voucher documents and ascertain that the related receiving reports are dated no later than the date of payment.
• D)Select and examine voucher documents and ascertain that the related receiving reports are dated no earlier than the date of payment.

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Definitions:

Collaborative Strategies

Tactics or approaches employed to work jointly with others towards a common goal or to solve shared problems.

Transfer Of Training

The effective application of skills, knowledge, or behaviors learned in one context to another work setting.

Pre-Training Evaluation

The assessment of participants' knowledge, skills, and attitudes before a training program to tailor content and establish a baseline for measuring progress.

Small Group Activities

Interactive and participatory tasks or exercises designed for a limited number of participants, fostering teamwork and collaborative learning.