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Audit2 Liab

The document presents a series of audit-related questions focusing on procedures for detecting unrecorded liabilities, identifying trade accounts payable, and verifying inventory records. It includes multiple-choice options for each question, assessing the auditor's understanding of effective audit practices. Key concepts include the examination of unpaid bills, vendor statements, and the relevance of various audit procedures.

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Jia Enero
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24 views2 pages

Audit2 Liab

The document presents a series of audit-related questions focusing on procedures for detecting unrecorded liabilities, identifying trade accounts payable, and verifying inventory records. It includes multiple-choice options for each question, assessing the auditor's understanding of effective audit practices. Key concepts include the examination of unpaid bills, vendor statements, and the relevance of various audit procedures.

Uploaded by

Jia Enero
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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10. Which of the following audit procedures is least likely to detect an unrecorded liability?

a. Analysis and recomputation of interest expense.

b. Analysis and recomputation of depreciation expense.

C. Mailing of standard bank confirmation forms.

d. Reading of the minutes of meetings of the board directors.

11. Unrecorded liabilities are most likely to be found during the review of which of the

following documents?

a. Uripaid bills

b. Shipping records

c. Bills of lading

d. Unmatched sales invoices

12. Which of the following audit procedures is best for identifying unrecorded trade accounts payable?

b. Investigating payables recorded just prior to and just subsequent to the balance sheet date to
determine whether they are supported by receiving reports.

C. Examining unusual relationships between monthly accounts payable balances and recorded cash
payments.

d. Reconciling vendors' statement to the file of receiving reports to identify items received just prior to
the balance sheet date.

Reviewing cash disbursements recorded subsequent to the balance sheet date to determine whether
the related payables apply to the prior period.

13. In verifying debits to perpetual inventory records of a nonmanufacturing firm, the auditor is most
interested in examining the purchase

a. Journal

b. Requisitions

c. Orders
d. Invoices

14. Which of the following procedures relating to the examination of accounts payable could the auditor
delegate entirely to the client's employees?

a. Test footings in the accounts payable ledger

b. Reconcile unpaid invoices to vendors statements

C. Prepare a schedule of accounts payable

d. Mail confirmations for selected account balances

15. An auditor's purpose in reviewing the renewal of a note payable shortly after the balance sheet date
most likely is to obtain evidence concerning management's assertions about

a Existence or occurrence

b. Presentation and disclosure

c. Completeness

d. Valuation or allocation

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