Day: September 5, 2026

Lucy, an audit junior, has been asked to test the completeness of certain items in the income statement.

She has carried out the following tests.

For each test carried out, select whether that test proves the assertion of completeness, does NOT prove the assertion of completeness, it depends on the size of the business, or needs to be referred to a senior colleague for approval.

• Tracing a sample of goods received notes to payables ledger and financial statements

Select ONE answer:

1. Proves completeness
2. Does not prove completeness
3. Consult a senior colleague
4. Depends on the size of the business

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 1

1. Correct – Tracing from GRNs to the payables ledger and financial statements proves the completeness of purchases/payables (i.e., that all goods received have been recorded as purchase/payables).
2. Not correct
3. Not correct
4. Not correct

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