CAF-8 · Chapter 10 · Question 10 of 10
Which of the following procedures specifically tests for 'Unrecorded' liabilities (Completeness)?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Reviewing the invoices received and payments made after the year-end (subsequent payments review).
Explanation
Reviewing what was paid after year-end helps find debts that should have been recorded as liabilities at the year-end but were missed.
More Substantive Procedures: Other Areas MCQs
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- Q3To obtain evidence about a pending legal claim against the client, the auditor should primarily:
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- Q5When auditing the 'Non-Current Liabilities' (long-term loans), the auditor should cross-check the interest expense in the income statement…
- Q6Which procedure best tests the 'Completeness' of a company's recorded payroll expense?