Explain Why Auditors Must Put Greater Emphasis on the Completeness

question 38

Essay

Explain why auditors must put greater emphasis on the completeness assertion when auditing accounts payable.Contrast this with the audit of assets.

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Definitions:

Perfect Tender Rule

A principle in commercial law requiring goods delivered under a sales contract to exactly meet the terms of the agreement.

Koch Petroleum

A division within Koch Industries, primarily involved in the refining and distribution of petroleum products.

Reasonable Grounds

Reasonable grounds refers to a set of facts or circumstances that would lead a person of ordinary caution and prudence to believe or suspect that a certain fact or event has occurred or is the case.

UCC

Stands for the Uniform Commercial Code, a standardized collection of laws and regulations that govern commercial transactions in the United States.