An auditor traced a sample of purchase orders and the related receiving reports to the purchases journal. The purpose of this substantive audit procedure most likely was to
A)identify usually 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 purpose of tracing purchase orders and receiving reports to the purchases journal is to determine that purchases were properly recorded. This ensures that the recorded amounts for purchases are accurate and complete.

An Auditor Traced a Sample of Purchase Orders and the Related