Question

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 transactions.

Answer

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