When using confirmations to provide evidence about the completeness assertion for accounts payable, the appropriate population most likely would be
A)vendors with whom the entity has previously done business.
B)amounts recorded in the accounts payable subsidiary ledger.
C)payees of checks drawn in the month after the year-end.
D)invoices filed in the entity's open invoice file.

Question

Quizplus · Accepted Answer

Vendors with whom the entity has previously done business are the appropriate population for using confirmations to provide evidence about the completeness assertion for accounts payable. This is because these vendors reflect outstanding balances for goods or services already received or billed, and therefore, they are the most relevant population to confirm completeness. The other options - amounts recorded in the accounts payable subsidiary ledger, payees of checks drawn in the month after the year-end, and invoices filed in the entity's open invoice file - may not necessarily capture all outstanding balances and do not represent a complete and representative population.

When Using Confirmations to Provide Evidence About the Completeness Assertion