The following are two specific balance-related audit objectives inthe audit of accounts payable. The list referred to is the list of accounts payable takenfrom the accounts payable master file. The total of the list equals the accounts payablebalance on the general ledger.1. All accounts payable included on the list represent amounts due to valid vendors.2. There are no unrecorded accounts payable.a. Explain the difference between these two specific balance-related audit objectives.b. Which of these two specific balance-related audit objectives applies to the generalbalance-related audit objective of existence, and which one applies to completeness?c. For the audit of accounts payable, which of these two specific balance-related auditobjectives is usually more important? Explain
The following are two specific balance-related audit objectives in
the audit of accounts payable. The list referred to is the list of accounts payable taken
from the accounts payable master file. The total of the list equals the accounts payable
balance on the general ledger.
1. All accounts payable included on the list represent amounts due to valid vendors.
2. There are no unrecorded accounts payable.
a. Explain the difference between these two specific balance-related audit objectives.
b. Which of these two specific balance-related audit objectives applies to the general
balance-related audit objective of existence, and which one applies to completeness?
c. For the audit of accounts payable, which of these two specific balance-related audit
objectives is usually more important? Explain
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