Accounts payable is affected by purchase transactions that increase the account
balance and payment transactions that decrease the balance, thus, detection risk for
payables assertions is affected by the control and inherent risk factors related to both these
transaction classes.

Question

Quizplus · Accepted Answer

The statement is true as purchase transactions increase the accounts payable balance and payment transactions decrease the balance, which affects the detection risk for payables assertions. Therefore, the control and inherent risk factors related to both these transaction classes impact the detection risk for payables assertions.

Accounts Payable Is Affected by Purchase Transactions That Increase the Account