To determine whether accounts payable are complete, auditors perform a test to verify that all merchandise received has been recorded. The population for this test consists of all
A)vendors' invoices.
B)purchase orders.
C)receiving reports.
D)canceled checks.

Question

Quizplus · Accepted Answer

Receiving reports (also known as goods received notes) show that merchandise has been received and can be used to verify that all purchases have been recorded in the accounts payable. Invoices and canceled checks only show that payment was made, not necessarily that all merchandise was received, and purchase orders do not provide evidence of receipt or recording of merchandise.

To Determine Whether Accounts Payable Are Complete, Auditors Perform a Test