An Audit Team Would Most Likely Examine the Detail Support

question 21

Multiple Choice

An audit team would most likely examine the detail support for which of the following charges?

• A)Payroll expense
• B)Cost of goods sold
• C)Supplies expense
• D)Legal expense.

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Definitions:

Merchant

An individual or business that sells goods or services in the market.

Article 2

Refers to a portion of the Uniform Commercial Code that deals with the sale of goods.

Provisions

Specific clauses or articles in a contract or legal statute detailing certain conditions, requirements, or stipulations.

Unconscionability

A legal doctrine that describes terms so extremely unjust, or overwhelmingly one-sided in favor of the party who has the superior bargaining power, that they are deemed contrary to good conscience.