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 a procedure to verify the completeness assertion, which ensures that all relevant transactions have been recorded. The auditor is checking that all goods received and recorded are included in accounts payable. The existence assertion concerns the existence of assets and liabilities, the rights and obligations assertion concerns whether the entity has legal rights to the assets and owes obligations for the liabilities, and the valuation assertion concerns whether the assets and liabilities are recorded at the appropriate amount.

The Auditor Traces Items from the Receiving Reports to the Accounts