The following are two specific balance-related audit objectives in the audit of accounts payable

Auditing P 6-29 The following are two specific balance-related audit objectives in the audit of accounts payable. The list referred to is the list of accounts payable taken from the accounts payable master file. The total of the list equals the accounts payable balance on the general ledger.

1. All accounts payable included on the list represent amounts due to valid vendors.
2. There are no unrecorded accounts payable.

Required:
a. Explain the difference between these two specific balance-related audit objectives.
b. Which of these two specific balance-related audit objectives applies to the general balance-related audit objective of existence, and which one applies to completeness?
c. For the audit of accounts payable, which of these two specific balance-related audit objectives is usually be more important? Explain.


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The following are specific presentation and disclosure-related audit objectives applied to presentation

Auditing P 6-28 The following are specific presentation and disclosure-related audit objectives applied to presentation and disclosure for fixed assets (a through d) and management assertions (1 through 4).

Specific Presentation and Disclosure-Relatd Audit Objective
a. All required disclosures regarding fixed assets have been made.
b. Footnote disclosures related to fixed assets are clear and understandable.
c. Methods and useful lives disclosed for each category of fixed asset are accurate.
d. Disclosed fixed assets dispositions have occurred.

Management Assertion about Presentation and Disclosure
1. Occurrence and rights and obligations
2. Completeness
3. Accuracy and valuation
4. Classification and understandability

Required:
For each specific presentation and disclosure-related audit objective, identify the appropriate management assertion. (Hint: See Table 6-5 on page 161.)


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