The auditor traces items from the receiving reports to the accounts payable journal in order to satisfy the
A)existence assertion.
B)rights and obligations assertion.
C)completeness assertion.
D)valuation assertion.

Question

Quizplus · Accepted Answer

Tracing items from the receiving reports to the accounts payable journal is done to ensure that all goods received are properly recorded in the accounts payable journal, thus satisfying the completeness assertion. Existence assertion refers to whether assets and liabilities exist at a particular point in time, rights and obligation assertion refers to whether the entity has legal ownership of its assets and liabilities, and valuation assertion refers to whether assets and liabilities are recorded at appropriate amounts.

The Auditor Traces Items from the Receiving Reports to the Accounts