Which of the following procedures would an auditor most likely perform in searching for unrecorded payables?
A)Reconcile receiving reports with related cash payments made just prior to year-end.
B)Contrast the ratio of accounts payable to purchases with the prior year's ratio.
C)Vouch a sample of creditor balances to supporting invoices, receiving reports and purchase orders.
D)For cash payments occurring after the balance sheet date, examine the date on the associated receiving report or vendor invoice to determine if it relates to the current audit period.

Question

Quizplus · Accepted Answer

Examining cash payments and their associated documents after the balance sheet date helps identify liabilities that existed at year-end but were not recorded, thus addressing the search for unrecorded payables.

Which of the Following Procedures Would an Auditor Most Likely