Which of the Following Audit Procedures Is Best for Identifying

question 434

Multiple Choice

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

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

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