Question

Which of the following procedures relating to the examination of accounts payable could the auditor delegate entirely to the entity's employees?

1) Test footings in the accounts payable ledger.
2) Reconcile unpaid invoices to vendors' statements.
3) Prepare a schedule of accounts payable.
4) Mail confirmations for selected account balances.

Answer 1

The procedure that the auditor could delegate entirely to the entity's employees is 1) Test footings in the accounts payable ledger.

Step-by-step explanation:

Test footings in the accounts payable ledger is a routine procedure that requires mathematical calculations to ensure that the total of the accounts payable ledger matches the total of individual account balances. This task can be delegated to the entity's employees who are responsible for maintaining the accounts payable ledger, as long as they have the necessary skills and knowledge to perform the calculation accurately.

By delegating this task, the auditor can focus on other important audit procedures and rely on the employees' competence to perform this routine task correctly. In conclusion, the procedure of testing footings in the accounts payable ledger can be delegated to the entity's employees to optimize the auditor's time and resources. The correct answer is 1) Test footings in the accounts payable ledger.