The valuation and allocation assertion relates to which of the following audit objectives?
A) All accounts payable on the balance sheet are real accounts payable for goods received or services performed.
B) All accounts payable owed by the entity at year-end are included on the balance sheet.
C) Accounts payable are stated at the amounts owed at year-end.
D) Accounts payable are properly classified, described and disclosed in the financial statements.

Question

Quizplus · Accepted Answer

The valuation and allocation assertion relates to whether accounts payable are stated at the amounts owed at year-end. This assertion ensures that the balance sheet reflects the correct amounts that the entity owes, including any adjustments or estimates required for accurate reporting. The other answer choices relate to different audit objectives, such as existence and completeness, which may also be tested when auditing accounts payable.

The Valuation and Allocation Assertion Relates to Which of the Following