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:

Financial Adviser

A professional who provides expert advice on financial planning and investment strategies to individuals or businesses.

Standard of Care

A guideline that clinicians are advised to adhere to when diagnosing and treating specific patient types, illnesses, or clinical scenarios.

Informed Consent

The full and understandable explanation of the risks associated with a course of action, and the clear understanding by the client or patient.

Standard of Care

In law, the degree of prudence and caution expected of an individual who is under a duty of care.