Which of the Following Procedures Would an Auditor Most Likely

question 18

Multiple Choice

Which of the following procedures would an auditor most likely perform in searching for unrecorded payables?

• A)Reconcile receiving reports with related cash payments made just prior to year-end.
• B)Contrast the ratio of accounts payable to purchases with the prior year's ratio.
• C)Vouch a sample of creditor balances to supporting invoices, receiving reports and purchase orders.
• D)For cash payments occurring after the balance sheet date, examine the date on the associated receiving report or vendor invoice to determine if it relates to the current audit period.

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Definitions:

Land Rent

The payment made for the use of land, which is determined by its location, fertility, and other factors influencing its productive capacity.

Acres

A unit of land area used in the United States and some other countries, equivalent to 43,560 square feet.

Relevant Columns

Important or pertinent columns in a database or spreadsheet that are significant to a particular analysis or task.

Positive Land Rent

The income received by landowners for the use of their land, typically due to the land's desirable location or fertility, which generates a return above the minimum needed to bring the land into production.