The specific audit objective "accounts payable are liabilities of the entity at the balance date" is derived from the:
A) completeness assertion.
B) valuation or measurement assertion.
C) presentation or disclosure assertion.
D) rights and obligations assertion.

Question

Quizplus · Accepted Answer

This objective is related to the rights and obligations assertion because it concerns verifying that the accounts payable recorded in the financial statements are indeed obligations (liabilities) that the entity is responsible for as of the balance date.

The Specific Audit Objective "Accounts Payable Are Liabilities of the Entity