The overall objective in the audit of the acquisition and payment cycle is:
A) to ensure the reliability of the affected accounts.
B) to ensure the accuracy of the affected accounts.
C) to evaluate whether the affected accounts are fairly stated in accordance with accounting standards.
D) to evaluate whether fraudulent payments were made.

Question

Quizplus · Accepted Answer

The objective of the audit of the acquisition and payment cycle is to evaluate whether the affected accounts are fairly stated in accordance with accounting standards. This includes ensuring the reliability and accuracy of the accounts, but the ultimate goal is to assess their fairness in accordance with the relevant accounting standards. The objective does not specifically focus on detecting fraudulent payments, although such payments may be identified during the course of the audit. Therefore, option C is the best choice.

The Overall Objective in the Audit of the Acquisition and Payment