Exam IIA-CIA-Part2 topic 3 question 82 discussion

Actual exam question from IIA's IIA-CIA-Part2

Question #: 82
Topic #: 3

A consumer electronics company is considering acquiring a small flash memory manufacturer. An internal auditor has been assigned to determine if the manufacturer's accounts payable contain all outstanding liabilities. Which audit procedure is not relevant for this objective?

A. Verify the period of liability of subsequent cash disbursements using related supporting documentation.
B. Send confirmations, including zero-balance accounts, to vendors with whom the manufacturer normally does business.
C. Trace receiving reports issued before the period end to the accounts payable list and vendor invoices.
D. Verify a sample of accounts payable by using related invoices, receiving reports, and purchase orders.

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Suggested Answer: D 🗳️

by kang1 at Nov. 27, 2020, 1:24 a.m.

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34205ac

7 months, 3 weeks ago

Selected Answer: D

the Q said all outstanding liabilities, D is just sampling

upvoted 2 times

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kang1

1 year, 8 months ago

Why not option B to confirm balances owed?

upvoted 2 times

yuen

1 year, 8 months ago

Because it says the confirmations will be done only to the select vendors (vendors they normally do business with)not all. Hence, this won't determine if the AP contains all the outstanding debts.

upvoted 1 times

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kayf

9 months, 1 week ago

We are looking for completeness (means tracing=Source documents to FS record) and D is the only one that relates to existence/occurrence assertion (FS record to source document=vouching)

upvoted 1 times

kayf

9 months, 1 week ago

Clearing the objective of question as a whole.

upvoted 1 times

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