The term cost flow refers to the association of costs with their assumed flow in the operation of a business

Most of the auditor's work in forming an opinion on financial statements consists of

a. Understanding internal control b. Obtaining and evaluating audit evidence c. Examining cash transactions d. Comparing recorded accountability with assets

Anong Mali is the purchasing manager at Wattana Technologies. She has responsibility for reviewing and authorizing purchase orders. Receiving reports are prepared by shipping and receiving based on the relevant purchase order(s). Purchase orders, receiving reports, and vendor invoices are reconciled by accounts payable, which authorizes payment. Which of the following would correct control

weaknesses related to these activities? A) Controls are adequate under the current system. B) Accounts payable should authorize purchase orders. C) Receiving reports should be reviewed and corrected by the purchasing manager. D) Vendor invoices should be reviewed by the purchasing manager to ensure that they are correct.