Which of the Following Procedures Would an Auditor Most Likely

question 20

Multiple Choice

Which of the following procedures would an auditor most likely perform in searching for unrecorded payables?

• A) Reconcile receiving reports with related cash payments made just prior to year-end.
• B) Contrast the ratio of accounts payable to purchases with the prior year's ratio.
• C) Vouch a sample of creditor balances to supporting invoices, receiving reports and purchase orders.
• D) Compare cash payments occurring after the balance sheet date with the accounts payable trial balance.

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Definitions:

Positive

Referring to a condition or quantity that is more than zero, often associated with good or desirable outcomes.

Negative

A term often used to describe a decrease, a downward trend, or harmful effects in various contexts, including finance, health, and environmental studies.

Straight Line

In mathematics and geometry, the shortest path between two points without any curvature.

Constant

A value that does not change and remains fixed within a given context or equation.