Internal controls that are likely to prevent the client from including as a business expense those transactions that primarily benefit management or other employees rather than the entity being audited satisfy the control objective that
A)recorded acquisitions are for goods and services received.
B)existing acquisitions are recorded.
C)acquisitions are correctly valued.
D)acquisitions are correctly classified.

Question

Quizplus · Accepted Answer

The control objective of preventing the client from including as a business expense those transactions that primarily benefit management or other employees rather than the entity being audited is directly related to ensuring that recorded acquisitions are for goods and services received, and not for personal expenses of employees or management. Therefore, choice A is the best answer. The other choices do not directly address this control objective.

Internal Controls That Are Likely to Prevent the Client from Including