Chapter 14, Problem 33COQ

Which of the following is the best audit procedure for determining the existence of unrecorded liabilities?

1. (1) Examine confirmation requests returned by creditors whose accounts appear on a subsidiary trial balance of accounts payable.
2. (2) Examine unusual relationships between monthly accounts payable balances and recorded purchases.
3. (3) Examine a sample of invoices a few days prior to and subsequent to year-end to ascertain whether they have been properly recorded.
4. (4) Examine selected cash disbursements in the period subsequent to year-end.