An Auditor Would Search for Unrecorded Liabilities By

question 33

Multiple Choice

An auditor would search for unrecorded liabilities by:

• A) examining paid invoices for inclusion in the proper accounting period.
• B) examining bank statements for outstanding checks written to vendors.
• C) examining the cash disbursements journal for the period subsequent to year-end but prior to issuance of the financial statements for payments made but not properly recorded as a liability in the correct period.
• D) All of the above.

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Definitions:

Laissez-Faire

An economic philosophy of free-market capitalism that opposes government intervention.

Oliver Wendell Holmes

A prominent American jurist and Supreme Court Justice known for his contributions to legal theory and the development of American common law.

National Association of Colored Women

An organization formed in 1896 in the United States, focused on promoting civil rights and improving the conditions for African-American women and their families through education, job training, and community service.

Lynchings

Extrajudicial killings, usually by hanging, performed by a mob with the intention of enforcing justice, revenge, or intimidation without legal trial.