Specific Assertion a Verify that recorded accounts payable include all amounts owed to vendors. (completeness) b. Verify that all accounts payable are recorded in the correct period (cutoff) c Determine whether accounts payable have been properly accumulated from the journal to the general ledger (accuracy) d Determine whether recorded accounts payable are valid. (existence/occurrence) Audit Procedure

Specific Assertion a Verify that recorded accounts payable include all amounts owed to vendors. (completeness) b. Verify that all accounts payable are recorded in the correct period (cutoff) c Determine whether accounts payable have been properly accumulated from the journal to the general ledger (accuracy) d Determine whether recorded accounts payable are valid. (existence/occurrence) Audit Procedure

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Audit Procedures

Audit Procedures are methods and techniques performed by the auditor to determine the quality of financial information of clients, thereby expressing an opinion on true & fair view of financial statements and entity position. They are identified and applied at the planning stage of audit after determining audit objectives, scope, approach, and risk assessment.

Question

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Answer completely.
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All's Fair Appliance Company is an appliance wholesaler. Select the most appropriate audit procedure from the list below and enter
the number in the appropriate place on the grid. (An audit procedure may be selected once, more than once, or not at all.)
Audit Procedure:
1. Compare selected amounts from the accounts payable listing with the voucher and supporting documents.
2. Review drafts of the financial statements.
3. Search for unrecorded liabilities.
4. Select a sample of receiving documents for a few days before and after year-end.
5. Obtain a listing of the accounts payable and agree total to general ledger control account.
Specific Assertion
a Verify that recorded accounts payable include all amounts owed to vendors. (completeness)
b. Verify that all accounts payable are recorded in the correct period (cutoff)
c Determine whether accounts payable have been properly accumulated from the journal to the general
ledger (accuracy)
d Determine whether recorded accounts payable are valid. (existence/occurrence)
Audit Procedure

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