Certified Internal Auditor (CIA) Part 2: Practice of Internal Auditing — Question 189

An internal auditor is conducting a walk-through of the accounts payable process. The auditor wants to assess the extent of the completeness of debts to suppliers as recorded in the ledger. Which of the following techniques would be most appropriate?

Answer options

• A. Tracing randomly selected vendor invoices to the record in the general ledger.
• B. Confirming with the main customers that the amount owed matches the ledger’s recorded amounts.
• C. Vouching a statistical sample of vendor invoices recorded in the general ledger.
• D. Using analytical techniques to establish expectations of what should be recorded for vendors.

Correct answer: A

Explanation

The correct answer is A because tracing vendor invoices to the general ledger helps ensure that all transactions are accurately recorded. Option B is incorrect as it involves customers rather than suppliers. Option C, while useful, does not directly verify completeness as tracing does. Option D relies on expectations rather than direct verification of recorded amounts.