In auditing accounts payable, an auditor's procedures most likely would focus primarily on management's assertion of:

Question

Quizplus · Accepted Answer

Choice "C" is correct. When testing liabilities, an auditor generally is concerned about understatement (as opposed to overstatement, for assets). Therefore, in auditing accounts payable, an auditor's procedures most likely would focus primarily on management's assertion of completeness (if accounts payable is not complete it would be understated). Choice "A" is incorrect. The assertion of existence is the primary focus of the auditor when auditing an asset account, not accounts payable. Choice "B" is incorrect. The understandability and classification assertion is not the primary focus in the audit of accounts payable. Choice "D" is incorrect. The assertion of valuation and allocation is not the main focus with respect to accounts payable. Good external evidence generally is available to support the amount, and allocation over more than one period generally is not required.

In Auditing Accounts Payable, an Auditor's Procedures Most Likely Would