Which of the following procedures would an auditor most likely perform in searching for unrecorded payables?
Compare cash payments occurring after the balance sheet date with the accounts payable trial balance
. You just studied 22 terms!
Which of the following audit procedures is best for identifying unrecorded?
Which of the following audit procedures is best for identifying unrecorded trade accounts payable?
Reviewing cash disbursements recorded subsequent
to the balance sheet date to determine whether the related payable applies to the prior period.
Which of the following procedures would an auditor most likely perform in searching for unrecorded?
Explanation: Auditor most likely perform the procedure in searching for unrecorded liabilities is
vouch a sample of cash
…
How does an auditor perform search for unrecorded liabilities?
Search for unrecorded liabilities involves
reviewing payment vouchers issued after year-end and unpaid supplier invoices as at the date of audit
to check that all material liabilities relating to the financial year have been recorded as at year-end.
When should an auditor conduct a search for unrecorded liabilities?
Search for unrecorded liabilities is the audit test that auditors perform to
verify if the payables are understated due to the liabilities have not been recorded
. This type of audit test is usually performed to respond to the risk of understatement of liabilities.
Which of the following procedures would an auditor most likely perform before the balance sheet date?
Which of the following procedures would an auditor most likely perform prior to the balance sheet date?
Auditing significant travel and entertainment expenses can be performed at
an interim period, applying procedures to transactions occurring between the testing and the end of the period, as appropriate.
Which management assertion with respect to accounts payable is the auditor likely to focus the most attention?
In auditing accounts payable, an auditor’s procedures most likely would focus primarily on management’s assertion of:
completeness
.
Which of the following audit procedures is the best identify unrecorded trade accounts payable?
Which of the following audit procedures is best for identifying unrecorded trade accounts payable? a.
Review of cash disbursements recorded subsequent to the balance sheet date
to determine whether the related payables apply to the prior period.
Which accounts are most likely to be audited when auditing accounts receivable?
In auditing the balance sheet, most revenue and expense accounts are also audited. Which accounts are most likely to be audited when auditing accounts receivable?
Sales and Bad Debt Expense
. You just studied 25 terms!
Which of the following documents are examples of audit evidence generated by the client?
Which of the following documents are examples of audit evidence generated by the client?
Shipping documents and receiving reports
. bc: Shipping documents and receiving reports are a result of the operations of the client. As goods are shipped to customers, a shipping document is prepared by the client.
What are unrecorded assets?
Unrecorded assets are
those assets that have been completely written off but are still physically present in the business
. There is no requirement to show these assets in the books before they are sold off. Hence, these assets are directly credited to the Realisation account at the time of dissolution of the firm.
What are audit procedures?
Audit Procedures are
steps performed by auditors to get all the information regarding the quality of the financials provided by the company
, which enable them to form an opinion on financial statement whether they reflect the true and fair view of organisation financial position.
How do you audit accounts payable?
To audit accounts payable, you must
match the ledger transactions to the figures in your general ledger
. Cutoff tests check to whether transactions for the fiscal year are indeed included in your business’ end of year financial statements. Often an accounts payable audit can be the sole focus of an audit.
How do you test for unrecorded liability?
- First, samples are selected of transactions that are made after closing of books of account.
- The auditor then proceeds to examine the sample payments by making verification with document evidence and assess if the liabilities existed on the date of balance sheet.
What is the primary purpose of targeted testing in searching for unrecorded liabilities?
During audit testing on accounts payable, an auditor should perform a test for unrecorded liabilities. This test is performed
to verify that accounts payable is not understated
. The auditor selects a sample of checks written after year-end.
Why is it more important to search for unrecorded notes payable than for unrecorded notes receivable?
It is more important to search for unrecorded notes payable because
notes payable are more likely to be understated and not recorded
. The auditor can use audit procedures such as reviewing related accounts, using a schedule of notes payable and accrued interest, using substantive analytical procedures.
