An Entity's Internal Control Structure Requires for Every Check Request

question 62

Multiple Choice

An entity's internal control structure requires for every check request that there be an approved voucher,supported by a prenumbered purchase order and a prenumbered receiving report.To determine whether checks are being issued for unauthorized expenditures,an auditor most likely would select items for testing from the population of all

• A)Purchase orders.
• B)Canceled checks.
• C)Receiving reports.
• D)Approved vouchers.

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Definitions:

Deferred Tax Liability

A tax obligation that a company owes but can delay paying to a future period, often arising from differences in accounting methods for book and tax purposes.

Internal Revenue Code

The comprehensive set of tax laws and regulations established by the United States federal government.

Financial Accounting

The field of accounting focused on the summarization, analysis, and reporting of financial transactions pertaining to a business.

Decision Makers

Individuals or entities responsible for making choices after considering risks, benefits, and impacts, often in the context of businesses or organizations.