ACCA Advanced Audit and Assurance (AAA) Practice Exam

What should auditors do to ensure completeness in financial records?

1. Agree client schedules to accounting records

2. Inspect and analyze physical assets

3. Estimate future financial performance

4. Review operational procedures

The correct answer is: Agree client schedules to accounting records

To ensure completeness in financial records, auditors often agree client schedules to accounting records. This process involves verifying that all entries in the financial statements are supported by corresponding documentation and data. By reconciling schedules, such as accounts receivable or accounts payable, with the general ledger, auditors can confirm that no transactions have been omitted and that all relevant financial data is accurately reflected in the records. This approach helps in identifying any discrepancies that may indicate incomplete financial reporting, such as unrecorded sales or liabilities. A thorough check against the client’s schedules ensures that both sides of the financial equation—assets, liabilities, income, and expenses—are fully accounted for. While the other options might be relevant to various aspects of an audit, such as evaluating the existence of physical assets or reviewing operational processes, they do not directly contribute to verifying that all financial transactions have been recorded completely. Thus, mapping client schedules to accounting records stands out as a specific and effective method for achieving completeness in financial records.