With respect to a small company's system of purchasing supplies, an auditor's primary concern should be to obtain satisfaction that supplies ordered and paid for have been
A) requested by and approved by the same individual.
B) used in the course of business and solely for business purposes during the year under audit.
C) received, counted, and checked to quantities and amounts on purchase orders and invoices.
D) properly recorded as assets and systematically amortized over the estimated useful life of the supplies.

Question

Quizplus · Accepted Answer

The auditor's primary concern is to ensure that the supplies ordered and paid for have been received, counted, and checked against quantities and amounts on purchase orders and invoices. This process verifies that the company has received what it paid for, which is crucial for accurate financial reporting and inventory management.

With Respect to a Small Company's System of Purchasing Supplies