In Auditing the Purchases System, an Auditor Vouches a Sample

question 50

Multiple Choice

In auditing the purchases system, an auditor vouches a sample of entries in the voucher register (accounting records) to the supporting documents.Which assertion would this test of controls most likely support?

• A)Completeness.
• B)Occurrence.
• C)Accuracy.
• D)Classification

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Definitions:

Planned Order Releases

Instructions to start the manufacture, ordering, or delivery of items in a specific period, in accordance with the production schedule.

Projected Output Rate

The estimated rate at which a system or process is expected to produce goods or complete tasks over a specific period.

Inventory Holding Costs

The expenses associated with storing unsold goods, including costs related to warehousing, insurance, depreciation, and opportunity cost.

Lot-For-Lot

An inventory ordering strategy that matches the exact quantity needed for production, minimizing holding costs.