Which of the following audit procedures are best for identifying unrecorded trade accounts payable?
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Which of the following audit procedures is best for identifying unrecorded trade accounts payable? Show
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Asked by Dodonutt, Last updated: Aug 13, 2022 + Answerf.BrianThe best thing to do, is to review the cash disbursements that are recorded subsequent to the balance sheet date. This is done in order to determine whether the related payables apply to the prior period. This is a concept in Finance, which is a very vast field and a sub-field of Business studies. Finance deals with the management of cash, and its flows in and out of an organization for various business purposes. Usually, finance majors are taught together with Accounting named as an Accounting and Finance course in many colleges. John SmithReviewing cash disbursements recorded subsequent to the balance sheet date to determine whether the related payables apply to the prior period LO #18-6 #18-7
This preview shows page 1 - 3 out of 8 pages. 82.Which of the following audit procedures is best for identifyingunrecorded trade accounts payable?A.Reconciling vendor's statements to the file of receiving reports toidentify items received just prior to the balance sheet date.B.Examining unusual relationships between monthly accounts payablebalances and recorded cash payments.C.Investigating payables recorded just prior to and just subsequent to thebalance sheet date to determine whether they are supported by receivingreports.D.Reviewing cash disbursements recorded subsequent to the balancesheet date to determine whether the related payables applied to prior period.The auditor's search for unrecorded includes the following audit procedures.•Examining cash disbursements made subsequent to the balance sheetdate and comparing them with recorded account payables as at year-end.•Sending confirmation to vendors, including those having zero balances.•Reconciling balances with vendor's documentation. Answer A is incorrect because reconciling vendor's statements to the file ofreceiving reports to identify items received just prior to the balance sheet datedoes not provide audit evidence about whether the items have been recorded.Answer B is incorrect because examining unusual relationships betweenmonthly accounts payable balances and recorded cash payments tests onlythe recorded payables.Answer C is incorrect because investigating recorded payables to determineif they are supported by receiving reports tests only the recorded payablesand does not assure the auditor that all the goods received have beenrecorded. Upload your study docs or become a Course Hero member to access this document Upload your study docs or become a Course Hero member to access this document End of preview. Want to read all 8 pages? Upload your study docs or become a Course Hero member to access this document Which of the following audit procedures would be best for identifying unrecorded liabilities?Which of the following audit procedures is best for identifying unrecorded trade accounts payable? Review of cash disbursements recorded subsequent to the balance sheet date to determine whether the related payables apply to the prior period. Which of the following procedures would an auditor most likely perform in searching for unrecorded payables quizlet?Which of the following procedures would an auditor most likely perform in searching for unrecorded payables? Compare cash payments occurring after the balance sheet date with the accounts payable trial balance. What are the audit procedures for accounts payable?There are four stages in a typical accounts payable auditing process: planning, fieldwork, audit reporting, and follow-up review. How do you verify trade payables in audit?A cross-check of every payment process transaction by contacting every vendor providing goods and/or services to verify transaction data during the period in question. Use cut-off tests to confirm that transaction dates and payments match, and identify any unmatched documents. Which of the following audit procedures is best for identifying 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.
Which of the following procedures would an auditor most likely perform in searching for unrecorded payables?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 procedures would an auditor most likely perform in searching for unrecorded payables quizlet?Which of the following procedures would an auditor most likely perform in searching for unrecorded payables? Compare cash payments occurring after the balance sheet date with the accounts payable trial balance.
What are the audit procedures for accounts payable?There are four stages in a typical accounts payable auditing process: planning, fieldwork, audit reporting, and follow-up review.
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