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Commerce · Q468

Auditing

Graduate and Post Graduate · Commerce · question 468

Q468

In order to vouch bought ledger, the auditor obtain confirmations from creditors. The principal reason for the auditor to examine suppliers statements at balance sheet date is to obtain evidence that:

A.
The supplier exist
B.
There are no unrecorded liabilities
Answer
C.
Recorded purchases actually occurred
D.
To link creditors with cash book entries

Answer: Option B

Solution

Answer: Option B
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