Confirmation of accounts payable will provide the least amount of evidence for the:
A) existence or occurrence assertion.
B) completeness assertion.
C) valuation or measurement assertion.
D) rights and obligations assertion.

Question

Quizplus · Accepted Answer

Confirmation of accounts payable primarily provides evidence regarding the existence or occurrence of the liability, the entity's rights and obligations concerning the payable, and the valuation or measurement of the liability. It is less effective in addressing the completeness assertion because it is more challenging to confirm liabilities that have not been recorded by the entity. Confirmations typically verify amounts the entity acknowledges owing, not what it might have omitted.

Confirmation of Accounts Payable Will Provide the Least Amount of Evidence