Which of the following is the best audit procedure for determining the existence of unre-corded liabilities? a.

Question:

Which of the following is the best audit procedure for determining the existence of unre-corded liabilities?
a. Examine confirmation requests returned by creditors whose accounts are on a subsidiary trial balance of
b. Examine a sample of cash disbursements in the period subsequent to year- end.
c. Examine a sample of invoices a few days prior to and subsequent to the year- end to ascertain whether they have been properly recorded.
d. Examine unusual relationships between monthly and recorded purchases.

Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...