Exam AUD topic 1 question 833 discussion

Actual exam question from AICPA's AUD

Question #: 833
Topic #: 1

Which of the following questions would most likely be included in an internal control questionnaire concerning the completeness assertion for purchases?

A. Is an authorized purchase order required before the receiving department can accept a shipment or the vouchers payable department can record a voucher?
B. Are purchase requisitions prenumbered and independently matched with vendor invoices?
C. Is the unpaid voucher file periodically reconciled with inventory records by an employee who does not have access to purchase requisitions?
D. Are purchase orders, receiving reports, and vouchers prenumbered and periodically accounted for?

Show Suggested Answer

Suggested Answer: D 🗳️
Choice "D" is correct. A question related to whether purchase orders, receiving reports and vouchers are prenumbered and periodically accounted for would most likely be included in an internal control questionnaire concerning the completeness assertion for purchases. A gap in recorded purchase order numbers might indicate an unrecorded purchase.
Choice "A" is incorrect. Requiring an authorized purchase order before accepting a shipment would relate to whether the purchase was valid, not whether it was properly accounted for.
Choice "B" is incorrect. Having prenumbered purchase requisitions independently matched with vendor invoices does not indicate whether all purchases are accounted for since these documents do not show that the purchase has been recorded.
Choice "C" is incorrect. Reconciling the unpaid voucher file with inventory records does not indicate whether all purchases are accounted for since these documents do not show that all purchases have been recorded.

by gemazyni at April 5, 2025, 5:11 p.m.

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