he following audit procedures were planned by Brienne Tarth, CPA, in the audit of the acquisition...

he following audit procedures were planned by Brienne Tarth, CPA, in the audit of the acquisition and payment cycle for Kings Landing, Inc. Which of the following procedures best satisfies the audit objective of Completeness? A. When the check signer writes "paid" on supporting documents, watch whether she does it after the documents are reviewed and the check is signed. B. Send confirmations to several vendors for which the recorded accounts payable balance is zero, requesting them to inform us of their balance due from Kings Landing, Inc. C. Select a sample of equipment listed on the fixed asset master files and inspect the asset. D. Sample items from the acquisitions journal and agree with them to the related vendor invoices.

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Answer: D. Sample items from the acquisitions journal and agree with them to the related vendor invoices.

Completeness is confirming that all transactions that needs to be recorded are in fact recorded. Here the risk regarding completeness seems to be an understatement of accounts payable by not recording some of the invoices received. So if we select a few acquisitions on a sample basis and agree to the related vendor invoices we will know if any of them has not been accounted for.

Option A: Does not test completeness, instead tests the occurrence of payment, moreover only helps in understanding the process as transactions recorded when they are not being watched cannot be tested this way.

Option B: This tests the accuracy of transactions as it's focus is on the balance amounts.

Option C: This procedure is irrelevant to acquisition and payment cycle.

Do let me know for any clarifications in the comments section below. Please give an upvote if you liked my answer.

ekkarill92 answered 1 year ago

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