Tests of Controls for the Occurrence Assertion for Purchases Include

question 33

Multiple Choice

Tests of controls for the occurrence assertion for purchases include all of the following except:

• A)evaluating proper segregation of duties.
• B)testing a sample of vouchers to an authorised purchase order.
• C)testing a sample of vouchers to receiving reports.
• D)tracing a sample of vouchers to the purchases journal.

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Definitions:

Direct Labor Budget

A financial plan that estimates the cost of direct labor required to meet production goals.

Direct Labor-Hours

A measure of the total time workers spend directly manufacturing a product or performing a service.

Direct Labor Rate

The average cost per hour for labor directly involved in the production of goods or services.

Direct Labor Budget

A forecast of the labor costs directly associated with production, factoring in anticipated hourly rates and hours needed.