The audit procedures used to verify accrued liabilities differ from those employed for the verification of accounts payable because
A) Accrued liabilities usually pertain to services of a continuing nature, while accounts payable are the result of completed transactions.
B) Accrued liability balances are less material than accounts payable balances.
C) Evidence supporting accrued liabilities is nonexistent, while evidence supporting accounts payable is readily available.
D) Accrued liabilities at year-end will become accounts payable during the following year.

Question

Quizplus · Accepted Answer

Accrued liabilities are expenses that have been incurred but not yet paid, while accounts payable are amounts owed to suppliers for goods or services that have been received but not yet paid for. Accrued liabilities usually pertain to ongoing services, such as salaries or interest expense, while accounts payable are the result of completed transactions. Therefore, the audit procedures used to verify accrued liabilities differ from those employed for the verification of accounts payable.

The Audit Procedures Used to Verify Accrued Liabilities Differ from Those