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)acquisitions are correctly valued.
B)existing acquisitions are recorded.
C)acquisitions are correctly classified.
D)recorded acquisitions are for goods and services received.

Question

Quizplus · Accepted Answer

The control objective of preventing the inclusion of expenses that benefit management or employees rather than the entity being audited is related to ensuring that recorded acquisitions are for goods and services received. This control helps to prevent fraudulent or inappropriate expenses from being recorded as legitimate business expenses. Therefore, the answer is D.

Internal Controls That Are Likely to Prevent the Client from Including