Which of the Following Is the Best Audit Procedure for Determining

question 55

Multiple Choice

Which of the following is the best audit procedure for determining the existence of unrecorded liabilities?

• A)Examine confirmation requests returned by creditors whose accounts are on a subsidiary trial balance of accounts payable.
• B)Examine a sample of cash disbursements in the period subsequent to year-end.
• C)Examine a sample of invoices a few days prior to and subsequent to year-end to ascertain whether they have been properly recorded.
• D)Examine unusual relationships between monthly accounts payable and recorded purchases.

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Definitions:

Shifting Values

Refers to altering the numerical or categorical data points in a dataset, leading to changes in analysis outcomes.

σ

The symbol for standard deviation, a measure of the amount of variation or dispersion of a set of values.

Normal Distribution

A symmetric probability distribution centered on the mean, demonstrating that occurrences near the mean happen more often than those far from it.

Maximum Oxygen Uptake

The maximum rate at which an individual can consume oxygen during intense or maximal exercise, indicating cardiorespiratory fitness.