In obtaining evidence in support of financial statement assertions, the auditor develops specific audit procedures to access
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All’s Fair Appliance Company is an appliance wholesaler. Select the most appropriate audit procedure from the list below and enter the number in the appropriate place on the grid. (An audit procedure may be selected once, more than once, or not at all.)
Audit Procedure:
1. Compare selected amounts from the accounts payable listing with the voucher and supporting documents.
2. Review drafts of the financial statements.
3. Search for unrecorded liabilities.
4. Select a sample of receiving documents for a few days before and after year- end.
5. Obtain a listing of the accounts payable and agree total to general ledger control account.
Specific Assertion
a. Verify that recorded accounts payable include all amounts owed to vendors. (completeness)
b. Verify that all accounts payable are recorded in the correct period. (cutoff)
c. Determine whether accounts payable have been properly accumulated from the journal to the general ledger. (accuracy)
d. Determine whether recorded accounts payable are valid. (existence / occurrence)
Audit Procedure
Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...
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Related Book For
Auditing and Assurance Services A Systematic Approach
ISBN: 978-1259162343
9th edition
Authors: William Messier, Steven Glover, Douglas Prawitt
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