ICAEW ARF · Chapter 8 · Question 6 of 12
Which procedure provides the best evidence about the completeness of trade payables?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Examining payments made and invoices received after the year end for liabilities that existed at the year end but were not recorded
Explanation
A search for unrecorded liabilities looks at transactions after the year end to find amounts that related to the year but were omitted, which tests completeness. Vouching ledger balances tests existence because it starts from recorded items. Casting tests arithmetic, and orders raised after the year end do not represent year-end liabilities.
More Audit procedures and substantive testing MCQs
- Q8Which procedure provides the best evidence of the existence of assets recorded in a client's non-current asset register?
- Q9A client's plant and machinery has a cost brought forward of £480,000. Additions in the year cost £60,000 and there were no disposals. The…
- Q10Which of the following is NOT the auditor's responsibility when attending a client's inventory count?
- Q11Which of the following best describes analytical procedures?
- Q12A company's year end is 31 December. Its last electricity bill covered the period up to 31 October. The next quarterly bill, received in…