In auditing accounts payable, an auditor's procedures most likely would focus primarily on management's assertion of
A) Existence.
B) Rights and obligations.
C) Completeness.
D) Valuation and allocation.

Question

Quizplus · Accepted Answer

In auditing accounts payable, the auditor's primary concern would be to ensure that all recorded payables are complete, meaning that they represent all obligations of the company as of the reporting date. The auditor would verify the completeness of payables by examining supporting documentation, such as vendor invoices and purchase orders, and by reconciling the total payables balance to the general ledger. The other assertions (existence, rights and obligations, and valuation and allocation) may also be relevant to auditing accounts payable, but completeness is the most important in this case.

In Auditing Accounts Payable, an Auditor's Procedures Most Likely Would