An examination of the balance in the accounts payable account is ordinarily not designed to:
A)determine that the amounts represent obligations of the company.
B)verify that accounts payable were properly authorized.
C)ascertain the reasonableness of recorded liabilities.
D)determine that all existing liabilities at the balance sheet date have been recorded.

Question

Quizplus · Accepted Answer

The examination of the balance in the accounts payable account is not designed to verify that accounts payable were properly authorized. This is because authorization of accounts payable is typically verified through the approval process for purchases and invoices, which is part of the control environment rather than the accounts payable balance itself. The other choices (A, C, and D) are all valid objectives of the examination of the accounts payable balance.

An Examination of the Balance in the Accounts Payable Account