"Observe If Personnel in the Purchasing Department Are Following Company

question 46

Multiple Choice

"Observe if personnel in the purchasing department are following company policies" is an audit procedure intended to test which control objective?

• A)Environment.
• B)Accuracy.
• C)Accounting and posting.
• D)Proper period recording.

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Definitions:

Indirect Expenses

Expenses that cannot be traced directly to one department.

Percent Of Sales

A financial ratio that compares various components of an income statement to the total sales revenue.

Gross Profit

The difference between sales revenue and the cost of goods sold, before deducting operating expenses.

Sales Journal

A specialized journal used to record all credit sales transactions of a business.