[Anonymous]

I did not understand Beckers question CPA-2468 below:

When using confirmations to provide evidence about completeness assertion for A/P, the appropriate population most likely would be:

A list of vendors with whom the entity has previously done business

Please help

[Anonymous]

You send all vendors, current and past, a confirmation to make sure there are no outstanding debts that the client hasn't recorded. This will help verify that the A/P is complete, as in, all outstanding A/P are recorded.

[Anonymous]

To test completeness assertion of AP, you would want to check if the AP on the books are complete and not understated.

To do that, you most likely would send confirmations to vendors, you might ask them to provide the correct amount and send the confirmations back to you (my opinion to get the best results). Then you compare the results to the books.

Vendors with whom the entity has previously done business create a more reliable evidence (in my opinion). I dont know what the other choices were in your MCQ; I usually pick an answer through a process of elimination..

[mla1169]

If you only sent confirmations to vendors with balances at the end of the year and not to vendors with zero balances there is a chance a vendors invoices were not recorded at all but there still is an amount due.

FAR- 77
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BEC -75

Massachusetts CPA (non reporting) since 3/12.

[Author]

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