An important primary purpose of the auditor's review of the client's procurement system should be to determine the effectiveness of the activities to protect against
A) Improper materials handling.
B) Unauthorized persons issuing purchase orders.
C) Mispostings of purchase returns.
D) Excessive shrinkage or spoilage.

Question

Quizplus · Accepted Answer

The main purpose of an auditor's review of the client's procurement system is to determine the effectiveness of the activities to prevent unauthorized persons from issuing purchase orders. This is because unauthorized personnel can cause fraud, waste, or abuse in the procurement process, leading to financial losses for the client. The other options, such as improper materials handling, mispostings of purchase returns, and excessive shrinkage or spoilage, may be related to procurement, but they are not the primary purpose of the auditor's review of the procurement system.

An Important Primary Purpose of the Auditor's Review of the Client's