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Question 16

A.

Supplier Invoice Missing

The two main account balances that have been affected by the inability to locate supplier invoice and corresponding entries in the payables register are the purchases account and the inventory account. The assertions that are a risk in this scenario are – Occurrence and Existence. The given scenario has given rise to the doubt that whether the purchase transactions relating to the deliveries that took place between February 2020 and May 2020 have actually occurred or not and are actually related to the entity or not. It has also given rise to the doubt that whether the inventories that have been recorded in the inventory register actually exist or not.

Scheduled Maintenance

The two mai....