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

question 6

Multiple Choice

An entity's internal control requires that for every check request 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:

Machiavellianism

A personality trait that involves manipulativeness, a lack of empathy, and a focus on self-interest and deception to achieve one's goals.

Personality Characteristic

A trait or quality that contributes to the unique emotional and behavioral features of an individual.

External Locus of Control

The belief that one's outcomes in life are determined by external forces or chance rather than personal actions.

Internal Locus of Control

A psychological concept referring to individuals who believe that they have control over the events and outcomes in their lives, as opposed to external forces determining their fate.