When the Auditors Select a Sample of Items from the Vouchers

question 9

Multiple Choice

When the auditors select a sample of items from the vouchers payable register for the last month of the period under audit and trace these items to underlying documents, the auditors are gathering evidence primarily in support of the assertion that:

• A) Recorded obligations were paid.
• B) Incurred obligations were recorded in the correct period.
• C) Recorded obligations occurred prior to year-end.
• D) Cash disbursements were recorded as incurred obligation.

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Definitions:

ESIGN

The Electronic Signatures in Global and National Commerce Act, a federal law that facilitates the use of electronic records and signatures in interstate and foreign commerce.

E-contracts

Legal agreements formed and signed digitally, using electronic means like email or web-based contract management platforms.

Legally Valid

Meeting all required legal formalities and conditions, thereby enforceable in a court of law.

Unilateral Agreement

A contract where only one party makes a promise to perform without receiving a reciprocal promise from the other party.