You have been assigned to the accounts payable transaction cycle as part of your auditing responsibilities.You have decided to vouch a sample of entries in the accounts payable master file to supporting documents.Which assertion is this test of controls most likely to support?
A)Accuracy
B)Classification
C)Completeness
D)Occurrence

Question

Quizplus · Accepted Answer

Vouching entries in the accounts payable master file to supporting documents would most likely support the occurrence assertion, which ensures that recorded transactions actually took place and pertain to the entity. By verifying that the recorded accounts payable are supported by valid invoices or other relevant documents, the auditor can gain assurance that the payables represent genuine obligations of the entity. Accuracy, completeness, and classification are other assertions that relate to different aspects of the transaction cycle, such as the accuracy of amounts, the completeness of the population, or the proper classification of the transactions, respectively.

You Have Been Assigned to the Accounts Payable Transaction Cycle