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.

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Definitions:

Hemodialysis

A medical treatment for kidney failure that involves filtering waste and excess fluids from the blood using a dialysis machine.

Prefix Dia-

A prefix in medical terminology meaning across, through, or completely, used in various terms such as diagnosis (understanding a condition through thorough examination).

Structure

The arrangement or organization of parts to form an object, system, or concept.

Urine

A liquid waste product produced by the kidneys that is excreted by the body through the process of urination.