An important primary purpose of the auditor's review of the entity's procurement system should be to determine the effectiveness of the activities to protect against:
A)improper materials handling.
B)unauthorized persons issuing purchase orders.
C)mispostings of purchase returns.
D)excessive shrinkage or spoilage.

Question

Quizplus · Accepted Answer

The primary purpose of the auditor's review of the entity's procurement system is to determine the effectiveness of the activities to protect against unauthorized persons issuing purchase orders. This is because unauthorized purchase orders can lead to fraudulent activity and increase the risk of financial loss. While the other options listed may also be important considerations in a procurement system review, they are not the primary focus.

An Important Primary Purpose of the Auditor's Review of the Entity's