When the auditors select a sample of items from the vouchers payable register for the last month of the period under audit and trace these items to underlying documents, the auditors are gathering evidence primarily in support of the assertion that:
A) Recorded obligations were paid.
B) Incurred obligations were recorded in the correct period.
C) Recorded obligations occurred prior to year-end.
D) Cash disbursements were recorded as incurred obligation.

Question

Quizplus · Accepted Answer

The auditors are tracing items from the vouchers payable register to underlying documents to verify that the recorded obligations actually occurred before the year-end, supporting the occurrence assertion.

When the Auditors Select a Sample of Items from the Vouchers