The unmatched supplier invoices file,together with the unmatched receiving report file,can be used as audit evidence of ____.
A)Unrecorded cash payments
B)Potential unrecorded liabilities for purchases
C)Potential overstatement of the ending inventory count.
D)Improper expense classification

Question

Quizplus · Accepted Answer

The unmatched supplier invoices file and the unmatched receiving report file can be used to identify potential unrecorded liabilities for purchases. If there are invoices and receiving reports that do not match to recorded transactions, it suggests that there may be purchases that have been made but not yet recorded in the accounting system. This could result in unrecorded liabilities that need to be recognized on the financial statements.

The Unmatched Supplier Invoices File,together with the Unmatched Receiving Report