John is auditing MegaCorp He finds an accounts payable for 10,000 cases of ball bearings. He checks to make sure the paper actually arrived and that the receiving department had signed and dated the invoice. He also checks the original purchase order to make sure the purchase was properly authorized. This illustrates
a. tracing.
b. vouching.
c. following.
d. monitoring.
b
You might also like to view...
Bonds payable less the discount on bonds payable is called the carrying value of the bonds
a. True b. False Indicate whether the statement is true or false
A(n) ________ for information is needed when past experience or knowledge is insufficient, the risk of making a wrong purchase decision is high, and the cost of gathering information is low.
A. external search B. alternative search C. postpurchase search D. cognitive search E. internal search
Which of the following is not a cost-based pricing method?
a. Target costing b. Time and materials pricing c. Return on assets pricing d. Gross margin pricing
Which of the following represents one of the purposes of the auditor's report?
A) To provide a place for management to justify questionable items in the statements B) To provide comparative ratios for the company's financial data C) To provide the CPA's opinion of the fairness of the financial statements D) To satisfy the need for full disclosure of all the facts relevant to a company's results and financial position