An auditor compares information on canceled checks with information contained in the cash disbursements journal. The objective of this test is to determine that
A) Recorded cash disbursement transactions are properly authorized.
B) Proper cash purchase discounts have been recorded.
C) Cash disbursements are for goods and services actually received.
D) No discrepancies exist between the data on the checks and the data in the journal.

Question

Quizplus · Accepted Answer

The objective of comparing information on canceled checks with information contained in the cash disbursements journal is to ensure that no discrepancies exist between the data on the checks and the data in the journal. This test helps to verify the accuracy and completeness of the journal entries and the existence of the transactions recorded. The other options, such as proper authorization, cash purchase discounts, and goods and services received, may also be important audit objectives, but they are not directly related to this specific test.

An Auditor Compares Information on Canceled Checks with Information Contained