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.

---

Definitions:

Cervix Effaced

Cervix effacement is the process in pregnancy wherein the cervix becomes thinner and shorter in preparation for childbirth.

Amniotic Sac Ruptured

The breaking of the fluid-filled sac that surrounds the fetus in the uterus, commonly known as water breaking.

Stage 3 Of Childbirth

The phase after the baby is born in which the placenta and membranes are expelled from the uterus.

Umbilical Cord

A flexible cordlike structure containing blood vessels and connecting a fetus to the placenta during gestation.