Which of the Following Statements Is Correct Regarding Accounts Payable

question 17

Multiple Choice

Which of the following statements is correct regarding accounts payable and the auditor's procedures?

• A) Because it is generally more difficult to discover a transaction that has not been recorded than to discover one that has been recorded incorrectly, the audit objective of completeness drives many of the substantive procedures applied to these balances.
• B) A judgment whether an unrecorded payable should be recorded before the financial statements are prepared depends entirely upon the source of the payable.
• C) The confirmation of accounts payable selected from the year-end trial balance of such accounts is most effective in discovering unrecorded liabilities.
• D) Unrecorded payables are often discovered through examining vouchers payable entered into the voucher register prior to the balance sheet date.

---

Definitions:

Overwhelmed

A state of feeling unable to cope due to excessive pressures or demands.

System

A set of interacting or interdependent components forming an integrated whole or a set of principles or procedures according to which something is done.

Rational Persuasion

Rational persuasion involves convincing others to change their attitudes or behaviors through logical arguments and factual evidence.

Conducted Surveys

The process of collecting data or feedback through structured questionnaires from a selected group of people.