Which of the Following Is a Substantive Procedure That an Auditor

question 82

Multiple Choice

Which of the following is a substantive procedure that an auditor most likely would perform to verify the existence of recorded accounts payable?

• A) Investigating the open purchase order file to ascertain that prenumbered purchase orders are used and accounted for.
• B) Receiving the client's mail, unopened, for a reasonable period of time after the year-end to search for unrecorded vendor's invoices.
• C) Vouching selected entries in the accounts payable subsidiary ledger to purchase orders and receiving reports.
• D) Confirming accounts payable balances with known suppliers who have zero balances.

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Definitions:

Relationship

A connection, association, or involvement between two or more entities, often characterized by a level of emotional or social linkage.

Equity Model

A theory that suggests fairness in the workplace is achieved when the ratio of inputs to outcomes is balanced among employees.

Positives

Positives refer to the favorable aspects or outcomes associated with a situation, decision, or action.

Negatives

Aspects, characteristics, or factors that are considered undesirable, harmful, or detrimental.