When auditing accounts payable, the auditor is more concerned about the possibility of understatements than overstatements.

Question

Quizplus · Accepted Answer

This is because understatements in accounts payable mean that the company could be concealing liabilities, which has a bigger impact on financial statements compared to overstatements. Overstatements are easier to detect because they usually involve duplicate payments or misclassification of expenses.

When Auditing Accounts Payable, the Auditor Is More Concerned About