A PA is planning the audit of Lowden's Company.Lowden verbally asserts to the PA that all the expenses for the year have been recorded in the accounts.Lowden's representation
A)should be disregarded because it is not in writing.
B)can enable the PA to minimize his work during control testing for the completeness of expenses.
C)is sufficient evidence for the PA to conclude that the completeness assertion is supported for the expenses.
D)is not considered a sufficient basis for the PA to conclude that all expenses have been recorded.

Question

Quizplus · Accepted Answer

Lowden's verbal assertion alone is not sufficient evidence for the completeness assertion. The PA will need to perform substantive procedures to verify the completeness of expenses. Verbal assertions are not considered a reliable basis for drawing audit conclusions.

A PA Is Planning the Audit of Lowden's Company