Confirmation of accounts payable will provide the least amount of evidence for the
A) existence or occurrence assertion.
B) completeness assertion.
C) accuracy and valuation assertion.
D) rights and obligations assertion.

Question

Quizplus · Accepted Answer

Confirmation of accounts payable primarily tests for the existence or occurrence of the liability, ensuring that the amounts recorded in the accounts payable ledger actually exist and are owed by the company. It is less effective for testing completeness, which concerns whether all liabilities that should have been recorded have been recorded. Confirmations are more about verifying what is there, rather than identifying what might be missing.

Confirmation of Accounts Payable Will Provide the Least Amount of Evidence