which of the following audit procedures is best for identifying unrecorded trade accounts payable?

Reviewing cash disbursements recorded subsequent to the balance sheet date to determinewhether the related payables apply to the prior period.B. Investigating payables recorded just prior to and just subsequent to the balance What is bookkeeping sheet dateto determine whether receiving reports support them.C. Examining unusual relationships between monthly accounts payable balances and recordedcash payments.D. Reconciling vendors’ statements to the file of receiving reports to identify items receivedjust prior to the balance sheet date.

  • Compare the ratio of accounts payable to purchases with the prior year’s ratio.C.
  • B. Independently verify the physical counts recorded by the client.
  • If the auditor selects a sample of open accounts payable and vouches the details to supporting purchase documents the auditor is testing the objective of validity.
  • Which of the following situations indicates a potential material weakness in internalcontrol over acquisitions and expenditures?

a. Examination of unusual relationships between monthly accounts payable balances and recorded cash payments.

which of the following audit procedures is best for identifying unrecorded trade accounts payable?

A. Reviewing cash disbursements recorded subsequent to the balance sheet date to determinewhether the related payables apply to the prior period. C. Select vendor accounts with small or zero HVAC Bookkeeping balances. Physical observation procedures for inventory are designed to audit for existence, completeness and valuation. B. Independently verify the physical counts recorded by the client. Employees in the receiving department should inspect materials received as to quality and quantity and prepare a receiving report. D. Ask the client to schedule the physical inventory count at the end of the year.

which of the following audit procedures is best for identifying unrecorded trade accounts payable?

Which of the following audit procedures is best for identifying unrecorded trade accounts payable?

The accounts payable trial balance is a list of payable amounts by vendor. This total should equal the control account total in the general ledger. Mary Monitor CA noted that ABC Co. Ltd. received goods prior to year-end and included them in the physical inventory but did not been record them in the accounting records. In this case which of the following adjustments should be made? Debit Purchases/credit Cost of Goods Sold.B.

  • Compare cash payments occurring after the balance sheet date with the accounts payable trial balance.
  • This total should equal the control account total in the general ledger.
  • Apply gross profit tests to ascertain the reasonableness of the physical counts.C.
  • Inquiry and analytical procedures.
  • Accounts with large balances.D.

a. Examination of unusual relationships between monthly accounts payable balances and recorded cash payments.

which of the following audit procedures is best for identifying unrecorded trade accounts payable?

Inquiry and analytical procedures. When auditing merchandise inventory at year-end, the auditor performs a purchase cut off test to obtain evidence thatA. All goods purchased before year-end are received before the physical inventory count.B.

  • Analytical procedures and confirmation.D.
  • Unacceptable goods are not recorded on receiving reports.D.
  • All goods purchased before year-end are received before the physical inventory count.B.
  • Debit Purchases/credit Cost of Goods Sold.B.
  • A. Reviewing cash disbursements recorded subsequent to the balance sheet date to determinewhether the related payables apply to the prior period.
  • C. Is owned by the company (legal title has been transferred).

Which of the following audit procedures is best for identifying unrecorded trade accounts payable?

No adjustment is necessary.C. Debit Inventory /credit Accounts Payable.D. Debit Cost of Goods Sold/credit Accounts Payable. D. accounts payable audit Compare cash payments occurring after the balance sheet date with the accounts payable trial balance.