When an Auditor Selects a Sample of Items from the Vouchers

question 21

Multiple Choice

When an auditor selects a sample of items from the vouchers payable register for the last month of the period under audit and traces these items to underlying documents, the auditor is gathering evidence primarily in support of the assertion that

• A) Recorded obligations were paid.
• B) Incurred obligations were recorded in the correct period.
• C) Recorded obligations were valid.
• D) Cash disbursements were recorded as incurred obligations.

---

Definitions:

Finished Goods

Products that have completed the manufacturing process and are ready for sale.

Network Diagram

A graphical representation of a project's tasks and the relationships between them, often used to plan and manage complex projects.

Vision Systems

Systems that use video cameras and computer technology in inspection roles.

Automatic Placement

The process of using machines or software to automatically place components in designated positions, often used in manufacturing and circuit board production.