An entity's internal control requires that for every check request there be an approved voucher, supported by a prenumbered purchase order and a prenumbered receiving report. To determine whether checks are being issued for unauthorized expenditures, an auditor most likely would select items for testing from the population of all:
A)purchase orders.
B)canceled checks.
C)receiving reports.
D)approved vouchers.

Question

Quizplus · Accepted Answer

Selecting items from the population of canceled checks allows the auditor to trace back each check to its corresponding approved voucher, purchase order, and receiving report, ensuring that each check was issued for authorized expenditures.

An Entity's Internal Control Requires That for Every Check Request