How would you verify the purchases of a company?

Question

Accepted Answer

To verify purchases of a company, you can follow these steps:

Review purchase orders and invoices to ensure they are accurate and match the company's records
Check if the purchases were authorized by the appropriate personnel
Compare the purchase amounts with the budget or financial forecasts
Verify the receipt of goods or services by cross-referencing with delivery notes or service agreements
Perform supplier reconciliations to ensure all purchases are accounted for
Conduct periodic physical inventory checks to validate the existence of purchased items

Accepted Answer

Verify all the vendor documents and identify which vendor is providing required material with quality at economy. Check wheather there is any related party transactions.