This Is Your First Audit of XYZ Ltd

Multiple Choice

This is your first audit of XYZ Ltd. During the initial planning you have discovered that the client lacks receiving reports and a policy as to the timing within which to record purchases. You have also observed that there are many adjusting entries to accounts payable, which is a material balance. The audit assertion most at risk when auditing accounts payable is:

A) existence.
B) valuation and allocation.
C) completeness.
D) rights and obligations.