Which of the following audit procedures is best for identifying unrecorded accounts payable?
A)Reviewing cash disbursements recorded subsequent to the balance sheet date to determine whether the related payables apply to the prior period.
B)Investigating payables recorded just prior to and just subsequent to the balance sheet date to determine whether they are supported by receiving reports
C)Examining unusual relationships between monthly accounts payable balances and recorded cash payments
D)Reconciling vendors' statements to the file of receiving reports to identify items received just prior to the balance sheet date

Question

Quizplus · Accepted Answer

Reviewing cash disbursements recorded subsequent to the balance sheet date to determine whether the related payables apply to the prior period is the best way to identify unrecorded accounts payable. This procedure helps to identify payments made after the balance sheet date that relate to invoices received before the balance sheet date but were not recorded.

Which of the Following Audit Procedures Is Best for Identifying