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 prior year ending balance of the account to the beginning balance
F)both A and E
G)both C and D

Question

Quizplus · Accepted Answer

To audit the accrued liabilities of a company, the auditor reviews the payments recorded during the year (option D) against the accounts payable balances, and determines whether the amounts accrued in the accounts at the end of the year are correct (option C). These two options combined make choice G the best answer. Option A and E, on the other hand, compare the beginning and ending balances of the account, which may not be relevant to auditing accrued liabilities.

To Audit the Accrued Liabilities of a Company,the Auditor