The Purpose of the Audit Procedure to 'Examine Underlying Documentation

question 25

Multiple Choice

The purpose of the audit procedure to 'examine underlying documentation for subsequent cash payments' is to:

• A) uncover payments made in a subsequent accounting period that represent liabilities at the balance sheet date.
• B) uncover liabilities on the balance sheet which should not have been recorded until a subsequent period.
• C) uncover cash payments recorded in a subsequent accounting period which should be recorded in this period.
• D) find the documentation relating to a cash payment.

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Definitions:

Peripheral Nerve

Nerves located outside of the brain and spinal cord, responsible for transmitting information between the central nervous system and the rest of the body.

Stimuli

External factors or events that provoke a response in biological organisms, essential for behavior and learning.

Receptors

Special structures or cells in the body that receive and process signals from stimuli or drugs, often triggering a biological response.

Environment

Surroundings.