1. Unrecorded liabilities are most likely to be found during the review of which of the following documents? (a) Shipping records. (b) Bills of lading. (c) Unmatched sales invoices. (d) Unpaid bills. An auditor performs a test to determine whether all merchandise for which the client was billed was received. The population for this test consists ofall (a) Vendors' invoices. (b) Receiving reports. (c) Canceled checks. (d) Merchandise received. 2. An auditor suspects that certain client employees are ordering merchandise for themselves over the Internet without recording the purchase or receipt of the merchandise. When vendors' invoices arrive, one of the employees approves the invoices for payment. After the invoices are paid, the employee destroys the invoices and the related vouchers. In gathering evidence regarding the fraud, the auditor most likely would select items for testing from the file of all: (a) Receiving reports. (b) Approved vouchers. (c) Vendors' invoices. (d) Cash disbursements. 3