Which of the Following Audit Procedures Is Best for Identifying

question 216

Multiple Choice

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

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

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Definitions:

Flagella

Long, slender appendages that protrude from the cell body of some bacteria, protozoa, and spermatozoa, used for locomotion.

Sponges

Simple aquatic animals with a porous body that water flows through, belonging to the phylum Porifera.

Nerve Fibers

Long, thin extensions from neurons that transmit nerve impulses to other cells.

Muscle Fibers

The cells of muscles that contract to produce movement. Muscle fibers are long, cylindrical cells that make up skeletal muscle.