Answered: emphasis of the auditor in the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The following are two specific audit objectives in the audit of accounts payable. The list referred to is the list of accounts payable taken from the accounts payable subsidiary record. The total amount in the list agrees with the accounts payable balance in the general ledger. What is the emphasis of the auditor in the following audit procedures?

Group of answer choices

1. All accounts payable included in the list represent amounts due to valid vendors.

a. emphasis on possible overstatement

b. emphasis on possible understatement

2. There are no unrecorded accounts payable.

a. emphasis on possible overstatement

b. emphasis on possible understatemen

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Audit procedures for items of Financial Statement

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