An auditor is planning the testing of the accounts payable balance. The auditor's main concerns should be
A)existence and accuracy.
B)completeness and cutoff.
C)occurrence and cutoff.
D)valuation and accuracy.

Question

Quizplus · Accepted Answer

When testing the accounts payable balance, the auditor's main concerns should be completeness and cutoff. Completeness refers to ensuring that all accounts payable transactions are recorded and included in the accounts payable balance. Cutoff refers to ensuring that transactions are recorded in the correct period. Both of these concerns are important to ensure that the accounts payable balance is fairly presented in the financial statements. Existence, occurrence, valuation, and accuracy are also important assertions to consider, but completeness and cutoff are the primary concerns for testing the accounts payable balance.

An Auditor Is Planning the Testing of the Accounts Payable