You are auditing the company's purchasing process for goods and services. You are primarily concerned with the company not recording all purchase transactions. Which audit procedure below would be the most effective audit procedure in this case?

Question

Quizplus · Accepted Answer

Tracing vendor invoices to amounts recorded in the accounts payable account would ensure that all purchase transactions have been recorded accurately. Vouching from the accounts payable account to vendor invoices would only ensure the accuracy of recorded transactions, not that all transactions have been recorded. Confirming accounts payable recorded amounts and reconciling the accounts payable subsidiary ledger to the accounts payable account are both important audit procedures but would not necessarily be the most effective for detecting unrecorded purchase transactions.

You Are Auditing the Company's Purchasing Process for Goods and Services