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:

Financial Resources

Economic capital or funds available to a business or individual for the purpose of investment, operational needs, or growth.

Asian Market

A regional market comprising various countries in Asia, known for its dynamic growth, diverse cultures, and significant economic influence globally.

Minimize Risk

Strategic actions aimed at reducing the likelihood of unfavorable outcomes or potential losses in business operations or decisions.

Cultural Nuances

Subtle variations in culture that may affect behaviors, communication, and perceptions, often requiring deep understanding and sensitivity.