Which of these would be considered an audit adjusting entry?
A) a significant amount of inventory was found which had not been included in the accounts and subsequently was identified by the auditors.
B) payroll owing for the last five days of the financial year was recorded by management.
C) the accounts receivable balance is debited by the auditors to separately show customer accounts with credit balances relating to customer advances.
D) depreciation on the office equipment was recorded by the accountant.

Question

Quizplus · Accepted Answer

The discovery of significant inventory not included in the accounts by auditors would require an audit adjusting entry to correct the financial statements.

Which of These Would Be Considered an Audit Adjusting Entry