Which of the Following Audit Procedures Is Least Likely to Detect

question 34

Multiple Choice

Which of the following audit procedures is least likely to detect an unrecorded liability?

• A)Analysis and recomputation of interest expense.
• B)Analysis and recomputation of depreciation expense.
• C)Mailing of standard bank confirmation forms.
• D)Reading of the minutes of meetings of the board of directors.

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Definitions:

Economic Model

A simplified representation or framework that economists use to describe and analyze economic processes, relationships, or phenomena.

Capital Goods

Long-lasting goods purchased and used by businesses to produce goods and services and contribute to their output.

Investment

The allocation of resources, often money, into assets or projects with the expectation of generating profit or income.

Marginal Costs

The increase in the sum total of expenses that comes with the production of one additional unit of a product or service.