During the audit of EmpireAge,Inc. ,the auditor notes a large series of checks that does not clear for an unusually long time after period end.What may the auditor suspect from this observation?

Question

Quizplus · Accepted Answer

The presence of held-checks at period-end could indicate that the company is holding onto payments and not issuing them, which could affect the company's cash balance. It could also indicate potential issues with accounts payable and the accuracy of the financial statements.

During the Audit of EmpireAge,Inc