In Auditing Accounts Payable, an Auditor's Procedures Most Likely Would

question 70

Multiple Choice

In auditing accounts payable, an auditor's procedures most likely would focus primarily on management's assertion of

• A) Existence.
• B) Rights and obligations.
• C) Completeness.
• D) Valuation and allocation.

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Definitions:

Sales on Account

Transactions where goods or services are sold and payment is deferred, creating accounts receivable.

Merchandise

Goods bought and sold by retailers.

Cash Collections

The process of gathering monies that are owed to a business by its customers or clients.

Beginning Inventory

The value of goods available for sale at the start of an accounting period, prior to any purchases or production during the period.