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 is to ensure that the supplies ordered and paid for by the small company have been received and verified against the quantities and amounts mentioned on the purchase orders and invoices. Other concerns, such as authorization of purchases, recording of assets, and use of supplies for business purposes, are also important but are secondary to the primary concern stated in option B.

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