How can the audit team confirm completeness of accounts payable?
The primary test to confirm the completeness assertion for accounts payable and other liabilities is to perform a “search for unrecorded liabilities”. Basically, the audit team obtains a listing of all cash disbursements made for a period of time after year-end.
The audit team then requests the invoice for the cash disbursement and determines if the invoice was properly included or properly excluded from the accounts payable balance at year-end.
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