The analytical procedure that requires the auditor to 'review the list of accounts payable for unusual or non- vendor payables' would have the best chance of discovering which possible error?
A) Misstatement of accounts payable and expenses
B) Invalid accounts or misstatements
C) Classification error for non- trade liabilities
D) Unrecorded accounts or misstatements

Question

Quizplus · Accepted Answer

Reviewing the list of accounts payable for unusual or non-vendor payables can help identify classification errors where non-trade liabilities might be incorrectly recorded as trade payables.

The Analytical Procedure That Requires the Auditor to 'Review the List