With respect to a small company's system of purchasing supplies, an auditor's primary concern should be to obtain satisfaction that supplies ordered and paid for have been:
A)requested and approved by authorized individuals who have no incompatible duties.
B)received, counted, and checked to quantities and amounts on purchase orders and invoices.
C)properly recorded as assets and systematically amortized over the estimated useful life of the supplies.
D)used in the course of business and solely for business purposes during the year under audit.

Question

Quizplus · Accepted Answer

The auditor's primary concern should be to obtain satisfaction that supplies ordered and paid for have been received, counted, and checked to quantities and amounts on purchase orders and invoices. This ensures that the supplies were actually received and that the quantities and prices are accurate, reducing the risk of overpayment or fraud. While ensuring proper recording and use of the supplies are also important, they are not the primary concern when auditing the purchasing process. The authorization of purchases should also be evaluated, but it is not explicitly stated as the primary concern in this question.

With Respect to a Small Company's System of Purchasing Supplies