Select the necessary words from the list of possibilities to complete the following statements. Statements of liabilities will exaggerate the financial strength of a company. 1. An 2. Auditors are primarily concerned with establishing the 3. of recorded accounts payable. In comparison to the confirmation of accounts receivable, the confirmation of accounts payable is performed frequently. 4. Accounts payable from important vendors should be confirmed, even though the accounts have at year-end. balances 5. 6. 7. When unrecorded liabilities are discovered by the auditors, they should evaluate whether the omission 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. 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 Most 9. from management regarding the existence of unrecorded payables. 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 accounts payable is performed after the year-end date. of recorded payables, much of the audit work on Answer