Which of the Following Procedures Would an Auditor Most Likely

question 4

Multiple Choice

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

• A)Trace a sample of accounts payable entries recorded just before year-end to the unmatched receiving report file.
• B)Compare a sample of purchase orders issued just after year-end with the year-end accounts payable trial balance.
• C)Vouch a sample of cash disbursements recorded just after year-end to receiving reports and vendor invoices.
• D)Scan the cash disbursements entries recorded just before year-end for indications of unusual transactions.

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Definitions:

Employees

Individuals hired by an organization or company to perform specific duties.

Policy Makers

Individuals or groups responsible for creating and implementing laws, regulations, or guidelines within an organization or government.

Operating Personnel

Workers directly involved in the operation and functioning of machinery, equipment, or systems within an organization.

Developmental Process

A series of steps or stages that result in growth, progress, or evolution in an individual, organization, or product.