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:

Personality

The combination of characteristics or qualities that form an individual's distinctive character and behavioral patterns.

Thematic Apperception Test

A psychological assessment tool that consists of a series of ambiguous images presented to the subject to elicit stories or responses.

Rorschach Test

A psychological test in which subjects' perceptions of inkblots are recorded and then analyzed using psychological interpretation.

Myers Briggs

A personality typing system that categorizes people into 16 different types based on preferences in how they conceive the world and make decisions.