The valuation and allocation assertion relates to which of the following audit objectives?
A)Accounts payable are stated at the amounts owed at year-end
B)All accounts payable on the balance sheet are real debts payable for goods received or services performed
C)All accounts payable owed by the entity at year-end are included on the balance sheet
D)Accounts payable are properly classified,described and disclosed in the financial report

Question

Quizplus · Accepted Answer

The valuation and allocation assertion relates to the accuracy of the amounts recorded in the financial statements. Choice A, which states that accounts payable are stated at the amounts owed at year-end, reflects the accuracy of the valuation of accounts payable. Choices B, C, and D relate to other audit objectives such as existence, completeness, and presentation and disclosure.

The Valuation and Allocation Assertion Relates to Which of the Following