When auditing accounts payable, the auditor would most likely review a sample of cash disbursements throughout the year end to determine whether disbursements for goods and services are applicable to the subsequent year.

Question

Quizplus · Accepted Answer

The statement is inaccurate. When auditing accounts payable, the auditor would review a sample of cash disbursements throughout the year end to determine whether disbursements for goods and services are accurately recorded in the correct period, not necessarily to determine whether they are applicable to the subsequent year.

When Auditing Accounts Payable, the Auditor Would Most Likely Review