To audit the accrued liabilities of a company,the auditor
A)compares the ending balance of the account to the prior year beginning balance
B)reviews the payments recorded at the end of the year against the liabilities
C)determines whether the amounts accrued in the accounts at the end of the year are correct
D)reviews the payments recorded during the year against the accounts payable balances
E)compares the beginning balance of the account to the prior year ending balance
F)both A and D
G)both C and E

Question

Quizplus · Accepted Answer

To audit accrued liabilities effectively, an auditor needs to ensure that the amounts accrued are correct and reflect all liabilities at year-end (C), and also compare the beginning balance of the account to the prior year's ending balance to ensure consistency and accuracy in the carryover of balances (E).

To Audit the Accrued Liabilities of a Company,the Auditor