1) If you were auditing Accounts Payable at a service firm, which assertion/s would be most...

1) If you were auditing Accounts Payable at a service firm, which assertion/s would be most at risk of misstatement, and why?

2) Explain how different groups of users of the financial statements may use the audit report for different objectives or purposes?

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Expert Solution

2)	Users of Financial Statements	Purpose/ Objective of Financial statements
	Suppliers	To analyze the company's ability to repay
	Stockholders	The decision of retaining or selling their stock in a particular company
	Investors	To know the Company's potentiality to repay. Their profitability, return on the investment in the business and whether to continue or not.
	Lenders	To analyze the company's ability to repay
	Employees	To know the company's stability, functioning, payroll processing in time and to develop their career
	Customers	They are the purpose of the business. To see the company's operations, customer-centric or not.
	The Government	For tax-related purposes.
	General Public	For outsiders to decide to have a relationship with the company
	Management	For the daily functioning of the business, their budgeting purpose, funding decisions etc..

1)	Accounts Payable Assertions

	Existence
	Completeness
	Cutoff

	Existence would be at more risk because
	There are chances of duplicate invoices or payments involved.

ekkarill92 answered 2 days ago

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