An Auditor Traced a Sample of Purchase Orders and the Related

question 2

Multiple Choice

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

• A) Identify unusually 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:

Negligence Per Se

A legal doctrine where an act is considered negligent because it violates a statute or regulation that is designed to protect the public.

Sunday Closing Law

Laws designed to restrict or ban commercial activities on Sundays, historically rooted in religious observance and resting practices.

Public Decency

Standards of behavior considered acceptable by society, often legally enforced to maintain public order and morals.

Proximate Cause

A legal concept that refers to the primary cause of an injury or damage, determining liability based on the directness of the relationship between the action and the harm.