Which of the following audit procedures is best for identifying unrecorded trade accounts payable?
A. Examining unusual relationships between monthly accounts payable balances and recorded cash payments.
B. Investigating payables recorded just prior to and just subsequent to the balance sheet date to determine whether they are supported by receiving reports.
C. Reviewing cash disbursements recorded subsequent to the balance sheet date to determine whether the related payable applies to the prior period.
D. Reconciling vendors' statements to the file of receiving reports to identify items received just prior to the balance sheet date.
Answer: C
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