Auditors primarily emphasize the understatement of liabilities in the audit of accounts payable because they are concerned about potential legal liability.

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Auditors are concerned about potential legal liability if they fail to detect an understatement of liabilities, particularly accounts payable. This is because accounts payable represent a legal obligation for the company to pay its vendors and suppliers, and understating them could result in legal and financial consequences. Therefore, auditors give special attention to accounts payable during the audit process.

Auditors Primarily Emphasize the Understatement of Liabilities in the Audit