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 presented in accordance with accounting standards.
D) to evaluate whether fraudulent payments were made.

Question

Quizplus · Accepted Answer

The overall objective of the audit of the acquisition and payment cycle is to evaluate whether the affected accounts are fairly presented in accordance with accounting standards. While ensuring reliability and accuracy of the accounts is important, the ultimate goal is to determine if the financial statements are fairly presented. Detecting fraudulent payments is also important, but it is not the overall objective of the audit of this cycle.

The Overall Objective in the Audit of the Acquisition and Payment