The risk of the company issuing checks near year-end and mailing them subsequently is not important to the auditor as the action does not affect cash balances.

Question

Quizplus · Accepted Answer

The statement is false. Issuing checks near year-end and mailing them subsequently can have an impact on the accounts payable balance, which in turn affects cash balances. As an auditor, it is important to consider the timing of check issuance and mailing to ensure that the financial statements accurately reflect the company's financial position.

The Risk of the Company Issuing Checks near Year-End and Mailing