Certified Internal Auditor (CIA) Part 2: Practice of Internal Auditing — Question 30

A consumer electronics company is considering acquiring a small flash memory manufacturer. An internal auditor has been assigned to determine if the manufacturer's accounts payable contain all outstanding liabilities. Which audit procedure is not relevant for this objective?

Answer options

• A. Verify the period of liability of subsequent cash disbursements using related supporting documentation.
• B. Send confirmations, including zero-balance accounts, to vendors with whom the manufacturer normally does business.
• C. Trace receiving reports issued before the period end to the accounts payable list and vendor invoices.
• D. Verify a sample of accounts payable by using related invoices, receiving reports, and purchase orders.

Correct answer: D

Explanation

The correct answer is D because verifying a sample of accounts payable using invoices, receiving reports, and purchase orders is a standard audit procedure that directly relates to confirming outstanding liabilities. In contrast, A, B, and C involve processes that help ensure all liabilities are accounted for but do not specifically focus on verifying existing accounts payable.