Audit of Expenses and Payables. To improve the current financial position as stated in the yearend balance sheet, Preocupado Sociedad of Montevideo, Uruguay wrote a great many cheques to vendors and entered them in the cheque register about 27 December. This action reduced accounts payable to a small amount. The cheques, however, were not mailed to the payees but held in the treasurer's desk until the following month.

Required A. Would this situation be of concern to the auditor? Briefly explain.

B. How might the auditor discover this situation?