Select the necessary words from the list of possibilities to complete the following statements. Statements Answer 1 An accrued liabilities 2 3 of liabilities will exaggerate the financial strength of a company. Auditors are primarily concerned with establishing the of recorded accounts payable In comparison to the confirmation of accounts receivable, the confirmation of accounts payable is performed _frequently Accounts payable from important vendors should be confirmed, even though the accounts have balances at year-end When unrecorded liabilities are discovered by the auditors, they should evaluate whether the omission is sufficiently material to warrant accrued liabilities an adjusting journal entry completeness 4 less ch 6 6. When observing the taking of a physical inventory at year-end, the auditors will record the serial number of the last issued to verify the accuracy of the cutoff of accounts payable. 7 Proper balance sheet presentation of accounts payable requires that any material amounts payable to such as directors and officers, be disclosed separately from other accounts payable 8. Auditors often obtain written from management regarding the existence of unrecorded payables. Most represent obligations payable sometime during the succeeding period for services of a continuing nature received before the balance sheet date, Because the auditors are primarily concerned with the of recorded payables, much of the audit work on accounts payable is performed after the year-end date 9. 10 Select the necessary words from the list of possibilities to complete the following statements. Answer accrued liabilities 1 An 2. Statements of liabilities will exaggerate the financial strength of a company Auditors are primarily concerned with establishing the of recorded accounts payable. 3. In comparison to the confirmation of accounts receivable, the confirmation of accounts payable is performed frequently Accounts payable from important vendors should be confirmed, even though the accounts have balances at year-end When unrecorded liabilities are discovered by the auditors, they should evaluate whether the mission is sufficiently material to warrant When observing the taking of a physical inventory at year-end, the auditors will record the serial number of the last issued to verify the accuracy of the cutoff of accounts payable. receiving report related parties representations understatement zero 4. on 6 7. Proper balance sheet presentation of accounts payable requires that any material amounts payable to such as directors and officers, be disclosed separately from other accounts payable. 9 8. Auditors often obtain written from management regarding the existence of unrecorded payables. Most represent obligations payable sometime during the succeeding period for services of a continuing nature received before the balance sheet date 10. Because the auditors are primarily concerned with the of recorded payables, much of the audit work on accounts payable is performed after the year-end date