Substantive procedures to examine the occurrence assertion for accounts payable include
A) Selecting a sample of vouchers and agreeing them to authorized purchase orders.
B) Selecting a sample of vouchers and tracing them to the purchases journal.
C) Comparing dates on vouchers to dates in the purchases journal.
D) Recomputing the mathematical accuracy of a sample of vendor invoices.

Question

Quizplus · Accepted Answer

Substantive procedures for the occurrence assertion aim to verify that recorded transactions actually occurred. Selecting a sample of vouchers and agreeing them to authorized purchase orders helps confirm that the recorded liabilities are valid and supported by actual purchase orders, thus addressing the occurrence assertion.

Substantive Procedures to Examine the Occurrence Assertion for Accounts Payable