The auditor is most likely to verify the liability account 'accrued comissions payable' in conjunction with the:
A)verification of contingent liabilities.
B)review of sales transactions.
C)examination of trade accounts payable.
D)review of disbursements after year-end.

Question

Quizplus · Accepted Answer

Accrued commissions payable is a liability account related to sales transactions. Therefore, the auditor is most likely to verify this account in conjunction with the review of sales transactions. A is incorrect because contingent liabilities are not related to this account. C is incorrect because trade accounts payable are a different type of liability account that is not related to commissions. D is incorrect because disbursements after year-end are not relevant to verifying this account.

The Auditor Is Most Likely to Verify the Liability Account