To determine whether accounts payable are complete, an auditor performs a test to verify that all merchandise received is recorded. The population of documents for this test consists of all:

Question

Quizplus · Accepted Answer

Choice "C" is correct. The auditor is looking for situations where merchandise has been received but was not recorded. Such situations may be identified by selecting receiving reports and then determining whether the related payable was recorded. Choice "A" is incorrect. Selecting from vendor's invoices might allow a purchase to be selected for which the goods have not yet been received. Choice "B" is incorrect. Selecting from purchase orders might allow a purchase to be selected for which the goods have not yet been received. Choice "D" is incorrect. Selecting from canceled checks will not result in testing of accounts payable, since the payable is eliminated once payment is made.

To Determine Whether Accounts Payable Are Complete, an Auditor Performs