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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:

Managerial Activities

Tasks and responsibilities undertaken by managers to plan, organize, lead, and control the operations of an organization.

Networking

The practice of building, maintaining, and utilizing relationships, especially for professional or business purposes.

Absenteeism Rate

The frequency or rate at which employees are absent from work, typically expressed as a percentage of total working days.

Contingent

Dependent on or conditioned by something else; in organizational behavior, often refers to rewards or responses that are based on specific performance criteria.

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