Which of the following is the best audit procedure for determining the existence of unrecorded liabilities? a.

Question:

Which of the following is the best audit procedure for determining the existence of unrecorded liabilities?

a. Examine confirmation requests by creditors whose accounts appear on a subsidiary trial balance of accounts payable.

b. Examine a sample of cash payments in the period subsequent to the year-end.

c. Examine a sample of invoices a few days prior to and subsequent to the year-end to ascertain whether they have been properly recorded.

d. Examine unusual relationships between monthly accounts payable and recorded purchases.

Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...