Which of the Following Procedures Would the Auditor Perform in Testing

question 38

Multiple Choice

Which of the following procedures would the auditor perform in testing the completeness assertion for accounts payable?

• A)Examine a sample of cash disbursements made after year-end to determine whether the disbursements were for goods acquired in the previous year.
• B)Reconcile vendor's statements with the accounts receivable trial balance.
• C)Examine production equipment for useful lives.
• D)Gather purchase orders immediately previous to and subsequent to year-end.

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Definitions:

Economic System

The framework through which a society allocates resources and distributes goods and services among its population.

Individual Bargaining Agreements

Contracts negotiated between an individual employee and their employer regarding terms of employment, separate from collective bargaining agreements.

Government Approval

The formal endorsement or permission granted by a governmental authority for a specific action, policy, or project.

High-Level-Tripartite

A form of negotiations or discussions involving three parties, usually the government, employers, and labor unions, focusing on broad or significant issues.