Auditing MCQ Auditing When using confirmations to provide evidence about the completeness assertion for accounts payable, the appropriate population most likely would be Show
a. Vendors
with whom the entity has previously done business Answer: a. Vendors with whom the entity has previously done business Learn More :Following are audit procedures that are normally conducted in the purchasing process and related accounts. 1. Test a sample of purchase requisitions for proper authorization. 2. Test transactions around year-end to determine if they are recorded in the proper period. 3. Review results of confirmation of selected accounts payable. 4. Compare payables turnover to previous years' data. 5. Obtain selected vendors' statements and reconcile to vendor accounts. 6. Compare purchase returns and allowances as a percentage of revenue or cost of sales to industry data. Required: Identify whether the tests listed above are substantive analytical procedures, tests of details of transactions, or tests of details of account balances. How do you ensure completeness of accounts payable?Make sure there are cash disbursements to match any reduction in accounts payable, and every check paying off a vendor has a corresponding account. If there's a check that can't be matched to an account, it may mean the account is not on the books.
When confirming accounts payable The approach is most likely to be one of?Receiving report and the purchase order. When confirming accounts payable, the approach is most likely to be one of: a. Selecting the accounts with the largest balances at year-end, plus a sample of other accounts.
When confirming accounts payable emphasis should be put on what kind of accounts?When confirming accounts payable, emphasis should be put on what kind of accounts? Accounts with small or zero balances.
What are the assertions for accounts payable?The primary relevant accounts payable and expense assertions are:. Existence.. Completeness.. Cutoff.. Occurrence.. |
When using confirmations to provide evidence about the completeness assertion for accounts payable the appropriate population most likely is?
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