Consider the following procedures for the verification of accounts payable:
-Construction work is underway on a new wing of the warehouse. The work is about 10% complete. The contract calls for the first progress billing at 25% completion.
_____
A)Verify the accuracy of schedules and agreement with accounts payable balances.
B)Apply analytical procedures.
C)Vouch recorded payables.
D)Confirm accounts payablE.
E)Perform purchases cutoff test.
F)Perform cash disbursements cutoff test.
G)Examine subsequent payments.
H)Search for unrecorded accounts payablE.
I)Compare statement presentation with GAAP.

Question

Quizplus · Accepted Answer

The procedure to search for unrecorded accounts payable is relevant here because the work is only 10% complete, and there may be liabilities that have not yet been recorded.

Consider the Following Procedures for the Verification of Accounts Payable