The following are two specific balance-related audit objectives in the audit of accounts payable. 1. All accounts
Question:
1. All accounts payable included on the list represent amounts due to valid vendors.
2. There are no unrecorded accounts payable.
The list referred to in the objectives is the aged accounts payable trial balance produced using the supplier master file. The total of the list equals the accounts payable balance on the general ledger.
REQUIRED
a. Explain the difference between these two specific balance-related audit objectives.
b. For the audit of accounts payable, which of these two would usually be balance-related audit objectives more important? Explain. 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 The Art and Science of Assurance Engagements
ISBN: 978-0133098235
12th Canadian edition
Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Ingrid B. Splettstoesser
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