ABC Company has issued a bond that pays 5% interest semiannually to bond holders on record June 30 and December 30. Payments are made on July 15 and January 15. ABC Company has a December 31 fiscal year-end. The auditor vouches the January 15, 2021 payment to the liabilities recorded on the December 31, 2020 balance sheet. Which of the following ASB balance assertions is the auditor testing?

Question

Quizplus · Accepted Answer

The auditor is testing the completeness assertion to ensure that all liabilities, including interest payable, are recorded on the balance sheet as of December 31, 2020.

ABC Company Has Issued a Bond That Pays 5% Interest