To check the completeness assertion for Accounts Payable, the auditor selected six line items from the accounts payable subledger and requested voucher packages for each selection. There are more than twenty accounts payable line items with amounts less than $500. For each voucher package, the auditor agreed dates and amounts on the voucher, purchase order, and receiving report. The Maintenance4U accounts payable line item totaling $5,000 was one of the items selected (see attached Invoice from Vendor"), with no exceptions noted.

A. No further action is needed.

B. Accounts payable confirmations should be sent to a sample of vendors with large outstanding balances at year-end.

C. Confirmation responses received electronically should be verified by calling the sender and the sender is also requested to mail the original confirmation directly to the auditor.

D. Confirmations should be sent to an additional sample of customers for further evidence.

E. Engage an audit specialist to review lawsuit and determine independent probability of loss.

F. Inquiries of management should be made as to the $0 balance account, as this may be a sign of fraud.

G. Propose an adjusting journal entry for the maintenance expense incorrectly excluded from Year 1.

H. Request that the attorney send an exact amount of probable loss.

I. Separate confirmation request should be sent to request information regarding any loans or liens outstanding.

J. To test for completeness, perform a search for unrecorded liabilities.

1/5/Year2 www.m4u.com Invoice: 14LM To: Shipps Machinery 345 Cactus Road Austin, TX \begin{tabular}{lr} Description & Amount \\ \hline 12/30/20Y1 Maintenance Services & $4,000.00 \\ 1/5/20Y2 Maintenance Services & Grand Total: $5,000.00$1,000.00 \\ & \end{tabular}