A Consumer Electronics Company Is Considering Acquiring a Small Flash

question 400

Multiple Choice

A consumer electronics company is considering acquiring a small flash memory manufacturer. An internal auditor has been assigned to determine if the manufacturer's accounts payable contain all outstanding liabilities. Which audit procedure is not relevant for this objective?

• A) Verify the period of liability of subsequent cash disbursements using related supporting documentation.
• B) Send confirmations, including zero-balance accounts, to vendors with whom the manufacturer normally does business.
• C) Trace receiving reports issued before the period end to the accounts payable list and vendor invoices.
• D) Verify a sample of accounts payable by using related invoices, receiving reports, and purchase orders.