Auditing & Assurance Services 6th Edition by Timothy Louwers

تمرين 17

A client's purchasing system ends with the recording of a liability and its eventual payment. Which of the following best describes auditors' primary concern with respect to liabilities resulting from the purchasing system?
A) Accounts payable are not materially understated.
B) Authority to incur liabilities is restricted to one designated person.
C) Acquisition of materials is not made from one vendor or one group of vendors.
D) Commitments for all purchases are made only after established competitive bidding procedures are followed.