In assessing control risk for purchases,an auditor vouches a sample of entries in the accounts payable trial balance to the supporting documents.Which account assertion would this test of controls most likely support?
A)Completeness.
B)Existence or occurrence.
C)Valuation or allocation.
D)Presentation

Question

Quizplus · Accepted Answer

Vouching a sample of entries in the accounts payable trial balance to the supporting documents tests the existence or occurrence assertion. This is because the auditor is verifying that the recorded purchases actually occurred and that the obligations to pay those purchases exist. The auditor is checking whether the accounts payable balance includes only those transactions that should be recorded.

In Assessing Control Risk for Purchases,an Auditor Vouches a Sample