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:

Who's

A contraction of "who is" or "who has," commonly used in English language.

Quite

A word expressing a degree of agreement or the extent of an adjective or adverb; often used to modify statements.

Passed

Could refer to having been approved in a test or examination, or signifies someone or something that has moved beyond a certain point.

They're

A contraction of "they are," used to refer to two or more people, animals, or things.