Your Ask Joey ™ Answer

Is Tracing Always The Default Test for Management’s Completeness Assertion?

When I say completeness you say what?! 

Trac… Oof! We actually wouldn’t ideally be tracing when testing for management’s completeness assertion for account payable balances. Tracing is a better test applied when testing for management’s overstatement of something in their financial statements (e.g., revenue, cash etc.) 

When testing for completeness on accounts payable, while technically “agreeing the payable listing to the general ledger may test for the completeness assertion, the better test would be for the auditor to perform a search for unrecorded liabilities!

This is an exam trick that they loooove to test! Don’t memorize it, see it! Universal CPA Review wants to give you that “Oh, now I see it!” moment.


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