An entity's internal control structure requires for every check request that 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 from canceled checks allows the auditor to verify that each check issued corresponds to an approved voucher, purchase order, and receiving report, ensuring that no unauthorized expenditures have been made.

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