You are the in-charge auditor on a client engagement where you suspect valid inventory purchases...
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Accounting
You are the in-charge auditor on a client engagement where you suspect valid inventory purchases during the year have been omitted from the accounting records. In an attempt to investigate this possibility, one of your assistants has selected entries from the purchases journal and agreed each transaction to an authorized client purchase requisition. You have correctly concluded that this is not a good test for detecting understated purchases. How would you improve the test? Explain and be specific.
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