ACCT 3222 Ch. 12 QUESTIONS WITH COMPLETE SOLUTIONS
What assertion is of most concern when auditing payables/liabilities? correct answer: completeness what should you be aware of when auditing payables/liabilities? correct answer: beware of understatement of liabilities/expenses and unrecorded liabilities/expenses Steps to audit payables/liabilities: correct answer: 1. Initial procedures for A/P account balance 2. Substantive analytical procedures 3. test of details of transactions 4. test of details of balances 5. other accrued liabilities Initial procedures for A/P account balance tests for: correct answer: valuation initial procedures for a/p account balance: correct answer: - agree beginning balance of AP to PY working papers - obtain AP trial balance - scan for unusual transactions - agree subsidiary ledger to general ledger substantive analytical procedures: correct answer: verify auditor's expectations of relationships such as AP to purchases
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acct 3222 ch 12 questions with complete solutions
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