The expenditure/disbursement cycle begins with requisitions from user departments and ends with the receipt of materials and the recognition of a liability. An auditor's primary objective in reviewing the cycle is to:

a. Obtain an understanding of the client's prescribed policies and procedures sufficient to plan the audit.

b. Investigate the handling and recording of unusual acquisitions.

c. Consider the need to increase substantive tests of purchases and accounts payable.

d. Assure that materials ordered, received, and paid for are actually on hand.

Choose the correct answer.