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Which of the following would be the most correct in determining the audit objective of Completeness?...

Which of the following would be the most correct in determining the audit objective of Completeness?

A. Examine a sample of customer orders to determine if each one has proper credit authorization.

B. Compare the date on a sample of shipping documents a few days before and after sheet date with related sales journal transactions.

C. Trace a sample of shipping documents to the related sales transaction recorded.

D. Inquire of management whether there are notes from related parties included account receivables.

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Answer #1

The correct answer is option D -

Inquire of management whether there are notes from related parties included accounts receivables.

The audit objective of completeness states to form an opinion as to whether all disclosures and other financial data to be recorded has been recorded and included.

Inquiry from management regarding notes from related parties including accounts receivable is to assure that the disclosure regarding related parties is made in the financial statements or not.

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