An Auditor Traced a Sample of Purchase Orders and the Related

question 85

Multiple Choice

An auditor traced a sample of purchase orders and the related receiving reports to the purchases journal.The purpose of this substantive audit procedure most likely was to

• A)Identify usually large purchases that should be investigated further.
• B)Verify that cash disbursements were for goods actually received.
• C)Determine that purchases were properly recorded.
• D)Test whether payments were for goods actually ordered.

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Definitions:

Toilet Training

The process of teaching a young child to control their bladder and bowel movements and use the bathroom for elimination.

Obstinate

Stubbornly refusing to change one's opinion or chosen course of action, despite attempts to persuade one to do so.

Lenient

Referring to a permissive or merciful approach, especially in the context of judgments or punishments.

Phallic Stage

A phase in Freudian psychosexual development, occurring from ages 3 to 6, where a child’s libido (sexual energy) is focused on the genital area.