The audit procedures used to verify accrued liabilities differ from those employed for the verification of accounts payable because:
A)accrued liability balances are less material than accounts payable balances.
B)accrued liabilities at year end will become accounts payable during the following year.
C)evidence supporting accrued liabilities is non-existent, whereas evidence supporting accounts payable is readily available.
D)accrued liabilities usually pertain to services of a continuing nature, whereas accounts payable are the result of completed transactions.

Question

Quizplus · Accepted Answer

Accrued liabilities usually pertain to services of a continuing nature, whereas accounts payable are the result of completed transactions. Therefore, audit procedures used to verify accrued liabilities differ from those for accounts payable. Verification of accrued liabilities requires an assessment of the nature and extent of the services provided, whereas verification of accounts payable is focused on ensuring that the goods or services have been received and invoiced.

The Audit Procedures Used to Verify Accrued Liabilities Differ from Those