To determine whether accounts payable are complete, an auditor performs a test to verify that all merchandise received is recorded. The population of documents for this test consists of all
A) Payment vouchers.
B) Receiving reports.
C) Purchase requisitions.
D) Vendors' invoices.

Question

Quizplus · Accepted Answer

Receiving reports provide evidence that merchandise was received, which can be verified against vendor invoices to ensure completeness of accounts payable. Payment vouchers only evidence payment, purchase requisitions only evidence the request for merchandise, and vendor invoices only evidence the cost of merchandise, but not whether it was received.

To Determine Whether Accounts Payable Are Complete, an Auditor Performs