An auditor performs a test to determine whether all merchandise was received for which the entity was billed. The population for this test consists of all:
A)merchandise received.
B)vendors' invoices.
C)canceled checks.
D)receiving reports.

Question

Quizplus · Accepted Answer

The correct answer is B) vendors' invoices. This is because the auditor is testing to ensure that the entity was billed only for merchandise that was actually received. Vendors' invoices represent the requests for payment from the entity and are the direct source to verify against the entity's records of received merchandise.

An Auditor Performs a Test to Determine Whether All Merchandise