An auditor compares information on canceled checks with information contained in the cash disbursements journal. The objective of this test is to determine that:
A)recorded cash disbursement transactions are properly authorized.
B)proper cash purchase discounts have been recorded.
C)cash disbursements are for goods and services actually received.
D)no discrepancies exist between the data on the checks and the data in the journal.

Question

Quizplus · Accepted Answer

The objective of comparing information on canceled checks with the cash disbursements journal is to ensure accuracy and consistency in the records, verifying that there are no discrepancies between the check details and the journal entries. This helps in maintaining accurate financial records.

An Auditor Compares Information on Canceled Checks with Information Contained