Auditors should be aware that a voucher system may result in which of the following at year-end:
A)Understatement of liabilities.
B)Overstatement of assets.
C)Understatement of owners' equity.
D)Overstatement of expenses.

Question

Quizplus · Accepted Answer

A voucher system may lead to an understatement of liabilities if vouchers for expenses incurred are not recorded or processed by year-end, resulting in liabilities not being recognized in the financial statements.

Auditors Should Be Aware That a Voucher System May Result