Audits of payables and related cash disbursements provide indirect evidence about the correctness of expense accounts.

Question

Quizplus · Accepted Answer

Audits of payables and related cash disbursements are intended to ensure that expenses have been properly authorized, recorded, classified and paid. Through these audits, the auditor can indirectly verify the accuracy of the expenses recorded in the financial statements.

Audits of Payables and Related Cash Disbursements Provide Indirect Evidence