An Audit Plan for Accounts Payable Would Not Include Which

question 61

Multiple Choice

An audit plan for accounts payable would not include which of the following procedures?

• A)Obtaining a trial balance of recorded accounts payable
• B)Sending confirmation to accounts with zero balances
• C)Reviewing cash receipts for the period after year-end.
• D)Obtaining written client representations about related-party payables and pledges of assets as collateral for liabilities

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Definitions:

Net Profit Margin

A profitability ratio calculated as net income divided by revenue, expressed as a percentage, indicating how much profit a company generates from its total sales.

Quality of Income

A measure of how easily accounting income can be converted to cash, indicating the reliability of earnings.

Gross Profit Percentage

A financial metric that represents the proportion of money left over from revenues after accounting for the cost of goods sold, expressed as a percentage.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company.