When an auditor selects a sample of items from the vouchers payable register for the last month of the period under audit and traces these items to underlying documents, the auditor is gathering evidence primarily in support of the assertion that:
A)recorded obligations were paid.
B)incurred obligations were recorded in the correct period.
C)recorded obligations were valid.
D)cash disbursements were recorded as incurred obligations.

Question

Quizplus · Accepted Answer

Tracing items from the vouchers payable register to underlying documents helps the auditor verify that the obligations recorded in the financial statements actually exist and are valid. This process is directly related to the assertion of validity, ensuring that the recorded obligations represent real financial transactions the company is responsible for.

When an Auditor Selects a Sample of Items from the Vouchers