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.

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Definitions:

Disparate Impact

A theory of discrimination based on the effect of certain policies that, while neutral on their face, have a disproportionately adverse effect on a protected group.

Prima Facie Case

A case in which the evidence before trial is sufficient to prove the case unless there is substantial contradictory evidence presented during trial.

Protected Class

Groups of people legally shielded from discrimination under various federal and state laws due to characteristics such as race, religion, gender, or disability.

Age Discrimination in Employment Act

U.S. federal law aimed at protecting employees and job applicants aged 40 and older from discrimination based on age in hiring, promotion, discharge, compensation, or terms, conditions, or privileges of employment.