Information regarding the proper cutoff of accounts payable is generally obtained in conjunction with the audit of inventories.

Question

Quizplus · Accepted Answer

During the audit process, auditors often examine the cutoff of accounts payable in conjunction with the audit of inventories because the proper recording of inventory purchases near the end of the reporting period affects both the inventory balances and the accounts payable balances. This ensures that transactions are recorded in the correct accounting period.

Information Regarding the Proper Cutoff of Accounts Payable Is Generally