The following is a test of control that would provide audit evidence for the management assertion of occurrence of credit purchases:

(a) selecting a sample of purchase invoices and ensuring there is evidence of a check that the discount given agrees with supplier agreement records.

(b) selecting a sample of authorized purchase orders and agreeing to receiving report and purchase invoice.

(c) for a sample of purchase invoices, verifying that there are appropriately authorized purchase orders.

(d) selecting a sample of purchases and ensuring that the items purchased are included either in sales or inventories.