An auditor is gathering evidence on the completeness assertion. To do so, she performs a test to verify that all goods received by the company have been recorded properly. The document population for this test would consist of all
A) vendor invoices.
B) purchase orders.
C) receiving reports.
D) cash disbursements for accounts payable.

Question

Quizplus · Accepted Answer

The completeness assertion ensures that all transactions and events that should have been recorded have been recorded. To test this assertion, the auditor would want to verify that all goods received by the company have been properly recorded. The best document population for this test would be receiving reports, as they would provide evidence that goods have been received by the company. Vendor invoices, purchase orders, and cash disbursements would not necessarily provide evidence of completeness of goods received.

An Auditor Is Gathering Evidence on the Completeness Assertion