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:

Performance Appraisal

A systematic evaluation process in which the work performance of an employee is evaluated in terms of quality, quantity, cost, and time.

Human Resource Strategy

A plan that aligns the management of employees with the goals of the organization to gain competitive advantage.

Staffing

The process of finding, recruiting, and training individuals to fill roles within an organization.

Valuable Resources

Assets, both tangible and intangible, that are of significant worth and importance to an individual, organization, or society.