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Auditors Examine Supporting Documentation for Cash Disbursements Subsequent to the Balance

question 10

Essay

Auditors examine supporting documentation for cash disbursements subsequent to the balance sheet date in order to determine whether the cash disbursement was for a current period liability.
Describe at least two audit procedures the auditor would perform to provide evidence that the cash disbursement was made for a current period liability.


Definitions:

Autonomy

The state or condition of having the freedom and independence to make one's own choices and decisions.

Factor Analysis

A method in statistics for identifying essential variables, or factors, that elucidate the correlation patterns seen in a collection of observed variables.

Sensation Seeking

The tendency to pursue sensory pleasure and excitement, often taking physical, social, legal, and financial risks for the experience.

Item Analysis

A statistical process used to evaluate the effectiveness and reliability of items (questions) in tests and questionnaires.

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