Which of the Following Is a Substantive Test That an Auditor

question 61

Multiple Choice

Which of the following is a substantive test that an auditor most likely would perform to verify the existence and valuation of recorded accounts payable?

• A)Investigating the open purchase order file to ascertain that prenumbered purchase orders are used and accounted for.
• B)Receiving the client's unopened mail for a reasonable period of time after year-end to search for unrecorded vendor's invoices.
• C)Vouching selected entries in the accounts payable subsidiary ledger to purchase orders and receiving reports.
• D)Confirming accounts payable balances with known vendors and suppliers who have zero balances at year-end.

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Definitions:

Consciousness

The state of being awake and aware of one's surroundings, thoughts, and experiences.

Incubation

A process or period of development and preparation, often used in reference to ideas, projects, or entrepreneurial ventures.

Reflective Thought

A careful consideration and analysis of one's own thoughts and feelings, often as a part of the decision-making process or for self-improvement.

Subconsciously

Pertaining to thoughts, feelings, or actions that occur without conscious awareness, influencing behaviors and decisions.