retailing entity uses the Internet to execute and record its purchase transactions. The entity's auditor recognizes that the documentation of details of transactions will be retained for only a short period of time. To compensate for this limitation, the auditor most likely would:
I picked A.
compare a sample of paid vendors' invoices to the receiving records at year-end.
I thought this is the most reasonable test.
But the correct answer is C.
perform tests several times during the year, rather than only at year-end.
I thought of C for a second, but then it won't be cost effective to do the test several times.
It turned out A is wrong because” Comparing a sample of paid vendor's invoices to the receiving records at year-end and increasing the sample of transactions to be selected for cutoff tests may not be possible due to the nature of the documentation available”
Something like this always throws me a curveball 🙁
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