Question

1. Which of the following procedures would an auditor most likely perform in searching for unrecorded payables?
(a) Reconcile receiving reports with related cash payments made just prior to year-end.
(b) Compare the ratio of accounts payable to purchases with the prior year’s ratio.
(c) Vouch a sample of creditor balances to supporting invoices, receiving reports, and purchase orders.
(d) Compare cash payments occurring after the balance sheet date with the list of creditors at year-end.

Answer 1

Answer:

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