Factors That May Contribute to Misstatements in the Expenditure Cycle

Multiple Choice

Factors that may contribute to misstatements in the expenditure cycle assertions include all of the following except:

A) there is usually a high volume of transactions.
B) unauthorized purchases and cash disbursements may be made.
C) purchased assets may be appropriated.
D) there may be duplicate payment of vendor's invoices.
E) contentious accounting issues may arise concerning whether a cost should be capitalized or expensed.