In performing analytical procedures in the expenditure/disbursement cycle, an auditor detects that payables divided by current liabilities
Question:
In performing analytical procedures in the expenditure/disbursement cycle, an auditor detects that payables divided by current liabilities appears low in comparison with prior years. Which of the following courses of action might this unusual relationship suggest?
a. Increase the scope of testing for unrecorded liabilities.
b. Confirm payables balances with creditors.
c. Decrease the scope of cutoff testing at the balance sheet date.
d. Decrease the scope of testing for unrecorded liabilities.
Choose the correct answer.
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