Which of the Following Audit Procedures Is Least Likely to Detect

question 34

Multiple Choice

Which of the following audit procedures is least likely to detect an unrecorded liability?

• A)Analysis and recomputation of interest expense.
• B)Analysis and recomputation of depreciation expense.
• C)Mailing of standard bank confirmation forms.
• D)Reading of the minutes of meetings of the board of directors.

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Definitions:

Elastic

A term often used in economics to describe a situation where the demand for a product or service significantly changes in response to a change in price.

Pricing Strategy

An approach businesses use to set the prices for their products or services, based on costs, market demand, competition, and other factors.

Marginal Revenue

The change in total revenue that results from selling one additional unit of product.

Robinson-Patman Act

A United States federal law that prohibits anticompetitive practices by producers, specifically price discrimination.