In obtaining evidence in support of financial statement assertions the
In obtaining evidence in support of financial statement assertions, the auditor develops specific audit procedures to access those assertions.

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

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