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:

Counteroffer

A response to an offer in which the original terms are rejected and new terms are proposed, forming part of the negotiation process.

Counteroffer

A proposal made in response to an initial offer, effectively rejecting the original offer and suggesting new terms for an agreement.

Price Too High

A situation where the cost of a good or service is considered unreasonably above what is deemed fair or reasonable.

Auctioneer

A person who conducts auctions, calling for and accepting bids, and declaring goods sold.