When Auditors Choose to Send Confirmations of Accounts Payable, Accounts

question 84

Multiple Choice

When auditors choose to send confirmations of accounts payable, accounts with _______.

• A)zero or small balances should be among those selected for negative confirmation because they may be more understated than accounts with large balances
• B)zero or small balances should be ignored because they are likely immaterial
• C)zero or small balances should be among those selected for confirmation because they may be more understated than accounts with large balances
• D)extremely large balances should be among those selected for confirmation because they may be more understated than accounts with smaller balances

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Definitions:

British Tweeds

A type of woolen fabric originated from the UK, known for its quality and durability.

Pounds Sterling

The official currency of the United Kingdom, which is also used in other territories and dependencies.

Temporal Method

An exchange rate conversion method used in financial reporting where monetary assets and liabilities are converted at current rates and non-monetary items at historical rates.

Canadian Dollars

Canadian dollars (CAD) refer to the official currency of Canada, which is used for all transactions within the country.