A Company's Internal Control System Requires That an Approved Payables

question 21

Multiple Choice

A company's internal control system requires that an approved payables voucher,supported by a purchase order and a receiving report,accompany every cheque requisition.To determine whether cheques are being issued for unauthorized expenditures,an auditor is most likely to select items for testing from the population of all ________.

• A)purchase orders
• B)cancelled cheques
• C)receiving reports
• D)approved vouchers

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Definitions:

Satisficing

A decision-making strategy that involves choosing an option that meets a minimum level of satisfaction rather than optimizing.

Best Possible Decision

The most favorable outcome derived from available alternatives, taking into account all known information, restrictions, and goals.

Confirmation Bias

The inclination to seek out, interpret, prefer, and remember information that corroborates an individual's already existing beliefs or assumptions.

Problem Identification

The process of recognizing and defining an issue that impedes the achievement of a goal.