Current Attempt in Progress

Steve and Sarah have been assigned to the audit of accounts payable for one of their auditing firm's larger clients. Before the audit

starts, Steve and Sarah are sitting at lunch one day discussing how this part of the audit might be handled. Steve mentions that they will

have to be careful to make sure they collect the right kinds of evidence to support the assertions they check as part of accounts

payable. Which of the following best represents the assertions that might be evaluated and the evidence gathered to support these

assertions?

Steve and Sarah are likely to audit the completeness assertion of accounts payable by checking to see if there is any evidence

of missing invoices and$/$or invoices that have not been entered into the records.

Steve and Sarah are likely to examine the population of accounts payable balances, sending confirmations to all vendors and

other holders, asking them to confirm balances owed by the client to support the rights and obligations assertion.

Steve and Sarah are likely to support the existence assertion of accounts payable by confirming balances with parties to

whom the client owes balances and documenting accordingly.

Steve and Sarah are most likely to audit the cutoff assertion by sending confirmations to accounts receivable holders,

requesting they confirm balances owed accordingly.