Which of the Following Audit Procedures Is Best for Identifying

question 17

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 payable applies 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.