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 that 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

Internal controls that prevent including transactions primarily benefiting management or employees as business expenses ensure that recorded acquisitions are for goods and services actually received by the entity being audited. This satisfies the control objective of ensuring recorded acquisitions are valid and accurate.

Internal Controls That Are Likely to Prevent the Client from Including