Which of the Following Procedures Would an Auditor Most Likely

question 20

Multiple Choice

Which of the following procedures would an auditor most likely perform in searching for unrecorded payables?

• A) Reconcile receiving reports with related cash payments made just prior to year-end.
• B) Contrast the ratio of accounts payable to purchases with the prior year's ratio.
• C) Vouch a sample of creditor balances to supporting invoices, receiving reports and purchase orders.
• D) Compare cash payments occurring after the balance sheet date with the accounts payable trial balance.

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Definitions:

Urbanization

The process by which towns and cities are formed and become larger as more people begin living and working in central areas.

North America

A continent located in the northern hemisphere and almost entirely within the western hemisphere, comprising countries such as the United States, Canada, and Mexico.

Technological Advances

Progress or development in technology, leading to the creation of new tools, systems, or methods of operation that improve efficiency, productivity, or quality of life.

Food Production

The processes involved in creating food products, from raw material acquisition to processing, distribution, and consumption.