Which assertion is most relevant when auditing accounts payable?

• A. Existence
• B. Completeness
• C. Occurrence
• D. Accuracy

Answer: (B)

In auditing accounts payable, the key concern is making sure every liability that existed at the balance sheet date is recorded. This is the completeness assertion: the records should capture all amounts owed to suppliers, so the liabilities aren’t understated. If some invoices or obligations are missed, liabilities would be too low, inflating net income and distorting the financial position.

To test completeness, the auditor often traces items from source documents like vendor invoices and receiving reports into the accounts payable ledger, and performs cutoff and subsequent payment procedures to confirm that all obligations are included in the period under audit. While existence, occurrence, and accuracy are still important in other contexts, completeness directly addresses the dominant risk for AP—omitted liabilities.