The subsequent period in an audit is the time extending from the balance sheet date to the date of the auditors’ report. Discuss the importance of the subsequent period in the audit of trade accounts payable.
Answer to relevant QuestionsEarly in your first audit of Star Corporation, you notice that sales and year-end inventory are almost unchanged from the prior year. However, cost of goods sold is less than in the preceding year, and accounts payable also ...The auditors of SSC Company are working on both audit objectives for the various accounts and documentation requirements. Parts (a) through (d) of this question relate to objectives, while part (e) addresses ...Compare the auditors’ approach to the verification of liabilities with their approach to the verification of assets.Most auditors are interested in performing as many phases of an audit as possible in advance of the balance sheet date. The verification of accounts payable, however, generally is regarded as something to be done after the ... “Auditors are not qualified to pass on the legality of a bond issue; this is a question for the company’s attorneys. It is therefore unnecessary for the auditors to inspect the bond indenture.” Criticize the quotation.
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