Chapter 14 Completion Questions
Select the necessary words from the list of possibilities tocomplete the following statements.
Use accrued liabilities, an adjusting journal entry,completeness, less, receiving report, related parties,representations, understatement, zero.
1. An ___ of liabilities will exaggerate the financial strengthof a company.
2. Auditors are primarily concerned with establishing the ___ ofrecorded accounts payable.
3. In comparison to the confirmation of accounts receivable, theconfirmation of accounts payable is performed ___ frequently.
4. Accounts payable from important vendors should be confirmed,even though the accounts have ___ balances at year-end.
5. When unrecorded liabilities are discovered by the auditors,they should evaluate whether the omission is sufficiently materialto want ___.
6. When observing the taking of a physical inventory atyear-end, the auditors will record the serial number of the last___ issued to verify the accuracy of the cutoff of accountspayable.
7. Proper balance sheet presentation of accounts payablerequires that any material amounts payable to ____ such asdirectors and officers, be disclosed separately from other accountspayable.
8. Auditors often obtain written ___ from management regardingthe existence of unrecorded payables.
9. Most ___ represent obligations payable sometime during thesucceeding period for services of a continuing nature receivedbefore the balance sheet date.
10. Because the auditors are primarily concerned with the ___ ofrecorded payables, much of the audit work on accounts payable isperformed after the year-end date.
