Which of the Following Audit Procedures Is Least Likely to Detect

question 49

Multiple Choice

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

• A)Analysis and re-computation of depreciation expense.
• B)Analysis and re-computation of interest expense.
• C)Reading of the minutes of meetings of the board of directors.
• D)Analysis of response to a bank confirmation request.

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Definitions:

Conditional Payment

A payment required under a contract only after specific conditions have been met or fulfilled.

Conditional Payment

Payment that is promised or executed upon the fulfillment of certain conditions or outcomes, rather than being guaranteed unconditionally.

Defect Of Title

A legal issue or flaw in the document of ownership that prevents a clear transfer of property rights.

Endorser

An individual who signs their name on a document, typically a negotiable instrument, indicating their support or transfer of rights to another party.