Public accounting firms acting as auditors of companies are very careful to ensure that all of the

Question:

Public accounting firms acting as auditors of companies are very careful to ensure that all of the company's accounts payable are recorded in the proper period. In other words, they want to ensure that all payables relating to the year under review are recorded as a liability at year end.

Required

Explain why you think auditors are so concerned that all payables owing at year end be properly recorded in the correct accounting period.

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...