An Auditor Is Planning the Testing of the Accounts Payable

question 90

Multiple Choice

An auditor is planning the testing of the accounts payable balance. The auditor's main concerns should be

• A)existence and accuracy.
• B)completeness and cutoff.
• C)occurrence and cutoff.
• D)valuation and accuracy.

---

Definitions:

Position of Strength

A favorable condition or situation that gives an individual or organization an advantage over others in negotiations or competitions.

Life Cycle Costing (LCC)

An approach used to assess the total cost of ownership, considering all costs associated from acquisition through disposal of an asset.

Capital Acquisitions

The process of procuring assets or capital goods that contribute to an organization's productive capacity, often involving significant investment.

Purchase Price

The amount of money paid to acquire a good or service, not including any additional costs like delivery or installation.