Which of the Following Procedures Would an Auditor Most Likely

question 4

Multiple Choice

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

• A)Trace a sample of accounts payable entries recorded just before year-end to the unmatched receiving report file.
• B)Compare a sample of purchase orders issued just after year-end with the year-end accounts payable trial balance.
• C)Vouch a sample of cash disbursements recorded just after year-end to receiving reports and vendor invoices.
• D)Scan the cash disbursements entries recorded just before year-end for indications of unusual transactions.

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Definitions:

Objection Handling Method

Techniques used in sales and negotiation to overcome or address objections raised by potential customers.

Sculpture Logistics

The detailed coordination necessary for transporting, handling, and storing sculptures, ensuring their preservation and safety.

Art Pieces

Individual works of art, including paintings, sculptures, and other creative expressions.

Appreciate Value

The process by which an asset increases in value over time, often due to factors like inflation, demand, and improvements.