The auditor is performing tests of transactions for individual accounts payable transactions with vendors. Which document provides more reliable information about individual transactions with vendors?
A) receiving report
B) vendors' invoices
C) vendors' statements
D) purchase orders

Question

Quizplus · Accepted Answer

Vendors' invoices provide detailed information about each individual transaction with the vendor, including the amount, description of the goods or services provided, and terms of the sale. Receiving reports provide information about the receipt of goods but do not include information about the costs or terms of the transaction. Vendors' statements provide a summary of all transactions with the vendor, which may not be as reliable for testing individual transactions. Purchase orders provide information about the goods or services to be purchased but do not provide information about the actual transaction itself.

The Auditor Is Performing Tests of Transactions for Individual Accounts