Selecting a sample of paid notes and tracing interest to the general ledger account is a test of the PCAOB assertion for
A) Accounting.
B) Valuation or allocation.
C) Completeness.
D) Existence or occurrence.

Question

Quizplus · Accepted Answer

Completeness is the assertion that all transactions and events that should have been recorded have been recorded. In this case, the auditor is testing the completeness of the interest expense account by selecting a sample of paid notes and tracing the interest to the general ledger account.

Selecting a Sample of Paid Notes and Tracing Interest to the General