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1.The auditor will most likely perform extensive tests for possible understatement of a.Revenue b.Assets c.Liabilities d.Equity 2.In auditing accounts payable, an auditor’s procedures most likely will focus primarily on management’s assertion of a.Existence b. Completeness c.Presentation and disclosure d.Valuation and allocation 3.Which of the following audit procedures is not appropriate for addressing the assertion of valuation? a.Confirm with creditors b.Test for unrecorded liabilities c.Perform analytical procedures d. Verify accounts payable trial balance 4.Which of the following is a substantive test that an auditor an auditor most likely would perform to verify the existence and valuation of recorded accounts payable? a.Vouching selected entries in the accounts payable subsidiary ledger to purchase orders and receiving reports. b.Confirming accounts payable balances with known suppliers who have zero balances. c.Investigating the open purchase order file to ascertain that prenumbered purchase orders are used and accounted for d.Receiving the client’s mail, unopened, for a reasonable period of time after the year- end to search for unrecorded vendor’s invoices 5.Auditor confirmation of accounts payable balances at the balance sheet date may be unnecessary because: a.This is a duplication of cutoff tests b.Accounts payable balances at the balance sheet date may not be paid before the audit is completed c.Correspondence with the audit client's attorney will reveal all legal action by vendors for nonpayment d.There is likely to be other reliable external evidence available to support the balances 6. To identify whether accounts payable are complete, an auditor performs a test to verify that all merchandise received is recorded. The population of documents for this test consists of all a.Payment vouchers b.Receiving reports c. Purchase requisitions d.Vendors’ invoices Which of the following procedures would an auditor most likely perform in searching for unrecorded liabilities? A. Trace a sample of accounts payable entries recorded just before year-end to the unmatched receiving report file B. Compare a sample of purchase orders issued just after year-end with the year-end accounts payable trial balance C. Vouch a sample of cash disbursements recorded just after year-end to receiving reports and vendor invoices D. Scan the cash disbursements entries recorded just before year-end for indications of unusual transactionsPosted by Josep | 406 days ago | Finance Of the responses provided, vouching a sample of cash disbursements recorded just after year-end to receiving reports and vendor invoices would most likely be performed by an auditor searching for unrecorded liabilities. This procedure would assure the auditor that the cash disbursements were not for liabilities which should have been recorded in the prior year. Ramakrishna | 406 days ago Which of the following procedures would an auditor most likely perform in searching for unrecorded liabilities? Which of the following procedures would an auditor most likely perform in searching for unrecorded payables group of answer choices?Correct answer is option c
Explanation: Auditor most likely vouch a sample of cash disbursements recorded just year-end to receiving reports and...
Which of the following procedures would help auditors search for unrecorded liabilities?Choice “C” is correct. The auditor is able to detect liabilities not recorded at year-end by comparing cash payments made after the balance sheet date to the related receiving reports and vendor invoices; any payments made on transactions dated before year-end reflect a liability that should have been recorded.
Which of the following is the most efficient audit procedure for the detection of unrecorded liabilities?Which of the following is the most efficient audit procedure for the detection of unrecorded liabilities? Compare cash disbursements in the subsequent period with the accounts payable trial balance at year-end.
How do auditors test for unrecorded liabilities?Audit Procedures to search for unrecorded liabilities.
The auditor shall verify purchase orders and all supporting documents with journal entries related to purchases and cash disbursals. This helps the auditor to assess if purchases have been properly recorded and with the correct amount.
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Which of the following procedures would an auditor most likely to perform in searching for unrecorded liabilities?
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