When using confirmations to provide evidence about the completeness assertion for accounts payable,the appropriate population most likely would be ________.
A)vendors with whom the entity has previously done business
B)amounts recorded in the accounts payable subsidiary ledger
C)payees of cheques drawn in the month after the year-end
D)invoices filed in the company's open invoice file

Question

Quizplus · Accepted Answer

The appropriate population for confirmations to provide evidence about the completeness assertion for accounts payable would be vendors with whom the entity has previously done business. These vendors would have provided goods or services to the entity and sent invoices to be recorded in accounts payable. By obtaining confirmation from these vendors, the auditor can ensure that all accounts payable balances have been recorded accurately and completely.

When Using Confirmations to Provide Evidence About the Completeness Assertion