8.1 Accounts payable risk assessment

Hilltop Partners is planning the audit for one of its clients. Jake Hilltop is performing the risk assessment at the assertion level for the accounts payable account to determine the nature and timing of the substantive work to be performed. Jake has assessed the inherent risk for the accounts payable account for each assertion as follows:

Jake has assessed the audit risk and control risk as low.

0. 1. Required
1. What assertion is at greatest risk?
2. Complete the table below and determine the appropriate audit approach for accounts payable at the assertion level.

Account Assertion	Inherent Risk	Control Risk	Overall Risk Assessment	Detection Risk	Audit Approach
Accounts payable completeness
Accounts payable accuracy, valuation, and allocation
Accounts payable existence
Accounts payable rights and obligations