Which of the following procedures is least likely to be performed before the balance sheet date? A. Review of internal control over cash disbursements.
C is corrent because the search for unrecorded liabilities is performed near the completion of the audit in large part using transactions recorded after year-end to determine that proper cutoffs have been made. A is incorrect because internal control procedures are often conducted prior to year-end. B is incorrect because receivables may be confirmed prior to year-end when internal control is strong. D is incorrect because inventory observation may be performed prior to year-end when internal control is strong.
