To Determine Whether Accounts Payable Are Complete, an Auditor Commonly

question 45

Multiple Choice

To determine whether accounts payable are complete, an auditor commonly performs sampling procedures to test whether all merchandise received is recorded.The population of documents for this test consists of all:

• A)payment vouchers.
• B)receiving reports.
• C)purchase requisitions.
• D)vendor's invoices.

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Definitions:

Account Types

This refers to the various categories used in accounting to classify financial transactions, such as assets, liabilities, equity, revenue, and expenses.

Revenues

Represent the total amount of income generated by the sale of goods or services related to a company's primary operations.

Asset Accounts

Accounts that represent the resources owned by a business, which are expected to provide future benefits.

Accounts Receivable

Financial obligations of clients or customers to a company for received goods or services that have yet to be settled.