Listed below are types of errors and fraud that might occur in financial statements and audit...

Listed below are types of errors and fraud that might occur in financial statements and audit procedures. Match the error or fraud with the audit procedure that is most likely to detect the error or fraud.

AUDIT PROCEDURES:

a.Reviewing unusual transactions during the year.

b.Comparing subsequent cash payments to the accounts payable trial balance.

c.Comparing subsequent cash payments to the accounts payable trial balance.

d.Reviewing unusual transactions during

e.Reviewing union contracts

	Error or Fraud	Audit Procedure
1.	The existence of unrecorded accounts payable.
2.	The existence of an unrecorded accrued payable.
3.	The existence of a fictitious account payable.	.
4.	An improper cutoff of accounts payable.
5.	The existence of related party payables.

Solutions

Expert Solution

By comparing subsequent cash payments to the accounts payable trial balance the existence of unrecorded accounts payable can be identified.
The existence of an unrecorded accrued payable can be identified by comparing subsequent cash payments to the accounts payable trial balance.
The existence of a fictitious account payable can be identified by reviewing unusual transactions during the year. Since these types of balances do not incur every year.
An improper cutoff of accounts payable can be identified by reviewing union contracts as the cutoff of accounts payable is mentioned there.
The existence of related party payables can be identified by reviewing unusual transactions during the year. Since these types of balances do not incur every year.

S. No.	Error or Fraud
1.	The existence of unrecorded accounts payable.	Comparing subsequent cash payments to the accounts payable trial balance
2.	The existence of an unrecorded accrued payable.	Comparing subsequent cash payments to the accounts payable trial balance
3.	The existence of a fictitious account payable.	Reviewing unusual transactions during the year.
4.	An improper cutoff of accounts payable.	Reviewing union contracts
5.	The existence of related party payables.	Reviewing unusual transactions during the year

ekkarill92 answered 1 year ago

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