In verifying debits to perpetual inventory records of a nonmanufacturing firm,the auditor would be most interested in examining the:
A)Purchases journal.
B)Purchase requisitions.
C)Purchase orders.
D)Vendors' invoices.

Question

Quizplus · Accepted Answer

Vendors' invoices would provide the most direct evidence of the cost of inventory purchases and would be used to verify the accuracy of the perpetual inventory records. The purchases journal, purchase requisitions, and purchase orders would also be important documents to review in the audit process, but they would not provide as direct information about the actual amounts and costs of inventory purchases.

In Verifying Debits to Perpetual Inventory Records of a Nonmanufacturing