Which of the Following Audit Procedures Is Best for Identifying

question 69

Multiple Choice

Which of the following audit procedures is best for identifying unrecorded accounts payable?

• A)Reviewing cash disbursements recorded subsequent to the balance sheet date to determine whether the related payables apply to the prior period.
• B)Investigating payables recorded just prior to and just subsequent to the balance sheet date to determine whether they are supported by receiving reports
• C)Examining unusual relationships between monthly accounts payable balances and recorded cash payments
• D)Reconciling vendors' statements to the file of receiving reports to identify items received just prior to the balance sheet date

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Definitions:

Negotiator's Relationship

The dynamic and interactions between parties engaged in negotiation, influenced by their past dealings, trust, and communication.

Unethical Tactics

are deceptive or morally wrong strategies used in negotiations or other situations to gain an unfair advantage.

Cultural Climate

The prevailing attitudes, standards, and environmental conditions within a culture that influence its members' behaviors and interactions.

Ethical Climate

The prevailing perceptions, practices, and attitudes within an organization or group regarding ethics and moral decision-making.