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Auditors Examine Supporting Documentation for Cash Disbursements Subsequent to the Balance

question 10

Essay

Auditors examine supporting documentation for cash disbursements subsequent to the balance sheet date in order to determine whether the cash disbursement was for a current period liability.
Describe at least two audit procedures the auditor would perform to provide evidence that the cash disbursement was made for a current period liability.


Definitions:

Outward Shift

A movement of the supply or demand curve to the right, indicating an increase in supply or demand.

Resources Efficiently

The effective and optimal usage of resources to maximize productivity and minimize waste.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision or choosing to undertake an action.

Production Possibility Frontier

This graph illustrates the maximum outputs for two different goods achievable with certain inputs and existing production technology.

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