The valuation and allocation assertion relates to which of the following audit objectives?
A) All accounts payable on the balance sheet are real debts 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 report

Question

Quizplus · Accepted Answer

The valuation and allocation assertion relates to the accuracy and completeness of the amounts reported on the financial statements. In this case, it ensures that accounts payable are stated at the amounts owed at year-end, which reflects the proper valuation of the liability. Choices A, B, and D relate to other assertions: accuracy, completeness, and presentation and disclosure, respectively.

The Valuation and Allocation Assertion Relates to Which of the Following