The audit procedures used to verify accrued liabilities differ from those employed for the verification of accounts payable because:
A)accrued liabilities usually pertain to services of a continuing nature, while accounts payable are the result of completed transactions.
B)accrued liability balances are less material than accounts payable balances.
C)evidence supporting accrued liabilities is nonexistent, while evidence supporting accounts payable is readily available.
D)accrued liabilities at year-end will become accounts payable during the following year.

Question

Quizplus · Accepted Answer

Accrued liabilities refer to expenses that have been incurred but not yet paid, typically relating to ongoing services or obligations. In contrast, accounts payable are invoices for goods or services that have been received but not yet paid for. Therefore, the audit procedures used to verify accrued liabilities will likely focus on the nature of the expenses and the validity of the obligation, rather than on the verification of invoices or other supporting documentation.

The Audit Procedures Used to Verify Accrued Liabilities Differ from Those