The auditor should be satisfied that acquisitions of raw materials are correctly stated at the completion of the:
A) payroll and personnel cycle.
B) acquisitions and payments cycle.
C) cash cycle.
D) inventory and warehousing cycle.

Question

Quizplus · Accepted Answer

Acquisitions of raw materials refer to purchases made by the company. Therefore, the most relevant cycle for the auditor to verify the accuracy of these transactions would be the acquisitions and payments cycle.

The Auditor Should Be Satisfied That Acquisitions of Raw Materials