An auditor traced a sample of purchase orders and the related receiving reports to the purchases journal and the cash disbursements journal. The purpose of this substantive procedure most likely was to
A) Identify unusually large purchases that should be investigated further.
B) Verify that cash disbursements were for goods actually received.
C) Determine that purchases were properly recorded.
D) Test whether payments were for goods actually ordered.

Question

Quizplus · Accepted Answer

The procedure of tracing purchase orders and receiving reports to the purchases journal and cash disbursements journal is primarily aimed at ensuring that all purchases are properly recorded in the accounting records.

An Auditor Traced a Sample of Purchase Orders and the Related