Which of the Following Procedures Would an Auditor Most Likely

question 891

Multiple Choice

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

• A) Vouch 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:

Theory

A system of ideas intended to explain something, based on general principles independent of the thing to be explained.

Experimental Group

In a scientific study, this is the group that receives the treatment or intervention being tested, allowing researchers to observe its effects in comparison to a control group.

Control Group

In experiments, a group of subjects that does not receive the treatment being tested, used as a benchmark to measure the effects of the treatment on the experimental group.

Dependent Variable

In research, it is the variable that is being tested and measured, usually to see if it is affected by the independent variable.