The auditor will most likely perform extensive tests for possible understatement of:
A)accounts payable.
B)sales.
C)accounts receivable.
D)inventory.

Question

Quizplus · Accepted Answer

Auditors perform extensive tests for possible understatement of accounts payable to ensure that all liabilities are recorded. Understating accounts payable can make a company's financial position appear stronger than it actually is, which is why auditors focus on this area to ensure completeness of recorded liabilities.

The Auditor Will Most Likely Perform Extensive Tests for Possible