Which of the following is a substantive procedure that an auditor most likely would perform to verify the existence of recorded accounts payable?
A)Investigating the open purchase order file to ascertain that prenumbered purchase orders are used and accounted for.
B)Receiving the entity's mail, unopened, for a reasonable period of time after the year-end to search for unrecorded vendor's invoices.
C)Vouching selected entries in the accounts payable subsidiary ledger to purchase orders and receiving reports.
D)Confirming accounts payable balances with known suppliers who have zero balances.

Question

Quizplus · Accepted Answer

Vouching selected entries in the accounts payable subsidiary ledger to purchase orders and receiving reports is a substantive procedure that can help verify the existence of recorded accounts payable. This involves examining documentation to ensure that actual purchases were made and that vendors have billed the entity for those purchases. Option A and B are also substantive procedures, but they do not specifically address verifying the existence of recorded accounts payable. Option D is not an appropriate procedure as confirming accounts payable balances with known suppliers who have zero balances would not provide any evidence of the existence of recorded accounts payable.

Which of the Following Is a Substantive Procedure That an Auditor