Auditing and Assurance Services 9th Edition by Alvin Arens,Mark Beasley,Randy Elder

Exercise 15

Which of the following audit procedures is best for identifying unrecorded trade accounts payable?
A) Examination of unusual relationships between monthly accounts payable balances and recorded cash payments.
B) Reconciliation of vendors' statements to the file of receiving reports to identify items received just prior to the balance sheet date.
C) Investigation of payables recorded just prior to and just subsequent to the balance sheet date to determine whether they are supported by receiving reports.
D) Review of cash disbursements recorded subsequent to the balance sheet date to determine whether the related payables apply to the prior period.