When searching for unrecorded liabilities at year-end, the population identified for sampling would be:
A)cash receipts from related parties recorded before year-end.
B)creditors whose accounts appear on a subsidiary trial balance of accounts payable.
C)cash disbursements recorded in the period subsequent to year-end.
D)invoices dated a few days before and after year-end.

Question

Quizplus · Accepted Answer

The correct population for sampling when searching for unrecorded liabilities at year-end includes cash disbursements recorded in the period subsequent to year-end. This is because such disbursements may relate to liabilities incurred before year-end that were not recorded, thus potentially uncovering unrecorded liabilities.

When Searching for Unrecorded Liabilities at Year-End, the Population Identified