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 beginning of the year are correct
D)reviews the payments recorded during the year against the accrued liabilities
E)compares the beginning balance of the account to the prior year ending balance
F)both A and C
G)both D and E

Question

Quizplus · Accepted Answer

Reviewing payments recorded during the year against the accrued liabilities (D) and comparing the beginning balance of the account to the prior year ending balance (E) are effective methods for auditing accrued liabilities. These approaches help ensure that liabilities are accurately recorded and carried over from one period to the next.

To Audit the Accrued Liabilities of a Company,the Auditor