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.