Which of the Following Is the Most Efficient Audit Procedure

question 14

Multiple Choice

Which of the following is the most efficient audit procedure for the detection of unrecorded liabilities at the balance sheet date?

• A) obtain an attorney's letter from the client's attorney
• B) confirm large accounts payable balances at the balance sheet date
• C) examine purchase orders issued for several days prior to the close of the year
• D) compare cash disbursements in the subsequent period with the accounts payable trial balance at year-end

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Definitions:

Jobs and Income Argument

A perspective that emphasizes the creation of jobs and income generation as primary economic objectives.

Economic Efficiency

The optimal allocation of resources in a manner that maximizes the production and distribution of goods and services.

Embargo

A government order that restricts commerce with a specified country or the exchange of specific goods.

Dumping

In international trade, it's the practice of selling a product in a foreign market at a price that is below the cost to produce it or below the price in the home market.