Why Are Audit Trails for the Purchasing Process Somewhat More

question 32

Multiple Choice

Why are audit trails for the purchasing process somewhat more complicated than those for the revenue process?

• A) The revenue process involves the revenue recognition principle.
• B) The purchasing process usually includes only a single journal entry and, therefore, provides inadequate support.
• C) The purchasing process may involve two journal entries often made at difference times.
• D) The revenue process is vulnerable to errors when posting from the cash receipts journal.

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Definitions:

Economic Growth

The increase in the production of goods and services in an economy over a period of time, typically measured by GDP.

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