Which of the following is not a typical audit procedure performed as part of the out-of-period liability tests?
A) Examine underlying documentation for cash disbursements made during the last month of the year.
B) Examine underlying documentation for bills not paid several weeks after the year-end.
C) Trace receiving reports issued before year-end to related vendors' invoices.
D) All of the above are correct.

Question

Quizplus · Accepted Answer

Out-of-period liability tests focus on determining whether liabilities exist at year-end that were not recorded until the following period. The typical audit procedures include examining bills not paid several weeks after year-end and tracing receiving reports issued before year-end to related vendors' invoices. However, examining underlying documentation for cash disbursements made during the last month of the year is not a typical audit procedure for out-of-period liability tests.

Which of the Following Is Not a Typical Audit Procedure