Which of the following audit procedures is aimed most directly at testing the completeness assertion for accounts payable?
A)Footing the list of accounts payable.
B)Examining underlying documentation for cash disbursements in the period after year-end.
C)Tracing shipping reports issued on or before year-end to related customer purchase orders and invoices.
D)Tracing shipping reports after year-end to related customer purchase orders and invoices.

Question

Quizplus · Accepted Answer

Examining underlying documentation for cash disbursements in the period after year-end helps ensure that all liabilities existing at year-end are recorded, directly testing the completeness assertion for accounts payable. This procedure can identify accounts payable that were not recorded as of the year-end but were subsequently paid.

Which of the Following Audit Procedures Is Aimed Most Directly