Question: A substantive test usually performed on accounts payable is a search for unrecorded liabilities. Discuss this test.

A substantive test usually performed on accounts payable is a search for unrecorded liabilities. Discuss this test.

Step by Step Solution

★★★★★

3.40 Rating (166 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

A substantive test usually performed on accounts payable is a search for unrecorded liabilities This ... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (2 attachments)

PDF file Icon

1469_605aea4c80fd0_662073.pdf

180 KBs PDF File

Word file Icon

1469_605aea4c80fd0_662073.docx

120 KBs Word File

Students Have Also Explored These Related Principles of Auditing Questions!

Q:

For the beams shown in Figures P4-21 through P4-26, determine the nodal displacements and slopes, the forces in each element, and the reactions. Figure P4-21 Figure P4-22 Figure P4-23 Figure P4-24...

Q:

Consider the audit procedure referred to as the search for unrecorded liabilities. a. How does the auditor perform it? b. When does the auditor perform it? c. What is its purpose? d. Describe the...

Q:

You, CA, have recently been assigned as audit senior for the audit of Open Arms Society (OAS), a not-for-profit organization set up three years ago to help integrate students with disabilities in...

Q:

The following questions are independent of each other. a. A warranty is like a contingent liability in that the amount to be paid is not known at year end. Why are warranties payable shown as a...

Q:

Discuss the audit of the acquisition and payment cycle. Compare and contrast tests of controls, substantive test of transactions and accounts payable. Discuss audit test of property, plant and...

Q:

Discuss the audit of the acquisition and payment cycle. Compare and contrast tests of controls, substantive test of transactions and accounts payable. Discuss audit test of property, plant and...

Q:

1. Before accepting an audit engagement, a successor auditor should make specific inquiries of the predecessor audit regarding: a. The predecessor's evaluation of matters of continuing accounting...

Q:

() AP12.5 (LO 9) Moderate Search for unrecorded liabilities You were in the final stages of your audit of the financial statements of Ozine Corporation for the year ended December 31, 2022, when you...

Q:

Problem One - Chapter 7: Part. A: You are the lead auditor for the Bella Luna Tree Company, Inc. in Bethel, CT. The company has a June 30" year end, and the audit team is discussing strategies for...

Q:

As attatched 1) An auditor is testing sales transactions. What procedure may (s)he use to test for recording of fictitious receivables in the accounts receivable ledger? A B C D Vouching debits in...

Q:

1. What does vouching mean in the context of verifying the ownership of assets? a. Having someone vouch for the custodian of assets. b. Studying the purchase and sale of assets patterns historically....

Q:

Sally Jorgenson owns a nail salon with 10 employees. The salon is a sole proprietorship, and Sally uses the accrual method of accounting and maintains applicable financial statements. A year ago,...

Q:

Compute the contribution margin ratio and the breakeven point in total sales dollars for Wall Street Products if the selling price per unit is $16, the variable cost per unit is $8, and the fixed...

Q:

- 1 2 0 ( 3 x 8 ) d x 1 - x 2 2

Q:

: Transcellular fluid is Specialized type of intercellular fluid O Found in confined space O includes fluid in synovial C 2+3 None of the following O

Q:

oncotic pressure or coiled pressure higher in interstitial fluid than in plasma important for control cell folume O form of osmotic pressure execrated by proteins either in blood plasma or...

Q:

What is the name of fluid that founds between cells and blood capillary vessel Plasma fluid interstitial fluid intravascularl O 1+3

Q:

A microprocessor production plant produces chips of three categories: Grade A, Grade B, and Grade C. Every single chip goes through rigorous testing before being sent out to the stores. For every 50...

Q:

The HR team at Nielsen conducts their hiring process in two stages. For applicants who are classified as Alpha, Beta, and Gamma in the first stage, the chances of getting hired full-time after the...

Q:

7. Calculate the effective annual interest rate for each of the following cases: (a) 12 percent per year compounded quarterly; (b) 12 percent per year compounded monthly; (c) and 12 percent per year...

Q:

James Johnson has just completed a detailed analysis of a potential new audit client, Rural Railroad and Pipeline, Inc. (RRP). James reports that the name is deceiving. The company is no longer in...

Q:

The auditor needs to understand the business in order to assess the risk of potential account misstatements. In preparing for a new audit, the auditor arranges to take a tour of the manufacturing...

Q:

The following table contains calculations of several key ratios for Indianola Pharmaceutical Company, a maker of proprietary and prescription drugs. The company is publicly held and is considered a...

Q:

USE THE FOLLOWING DATA TO ANSWER QUESTIONS Annual Income Statements 2013 2014 Sales 500,000 560,000 COGS ???? 149,350 Gross profit 380,000 410,650 Oper. exp 225,000 250,100 Depreciation 15,000 15,000...

Q:

21. Write a line of code that will change an applet's background color to red. 22. Write a line of code to print each of the following in the command prompt window: a. your name b. a previously...

Q:

Times for a surgical procedure are normally distributed. There are two methods. Method A has a mean of 21 minutes and a standard deviation of 5 minutes, while method B has a mean of 25 minutes and a...