Which of the following is the best audit procedure for determining the completeness of the accrued liabilities listing?
A)Examine unusual relationships between monthly accounts payable balances and recorded purchases.
B)Examine confirmation requests returned by creditors whose accounts appear on a subsidiary trial balance of accounts payable.
C)Examine a sample of cash disbursements in the period subsequent to year-end.
D)Examine a sample of invoices a few days prior to and subsequent to year-end to ascertain whether they have been properly recorded.

Question

Quizplus · Accepted Answer

Examining a sample of cash disbursements in the period subsequent to year-end helps in identifying liabilities that were incurred before year-end but paid after, ensuring that all liabilities are recorded and the completeness assertion for accrued liabilities is addressed.

Which of the Following Is the Best Audit Procedure for Determining