Auditor Confirmation of Accounts Payable Balances at the Balance Sheet

question 13

Multiple Choice

Auditor confirmation of accounts payable balances at the balance sheet date may be unnecessary because

• A)this is a duplication of cutoff tests.
• B)accounts payable balances at the balance sheet date may not be paid before the audit is completed.
• C)correspondence with the audit client's lawyer will reveal all legal action by vendors for nonpayment.
• D)there is likely to be other reliable external evidence available to support the balances.

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Definitions:

Argument

A set of statements where one or more premises are used to provide support for a conclusion.

Appeal to Authority

A logical fallacy where the conclusion is justified by citing an authoritative or perceived authoritative figure who mentioned it.

Non-expert

An individual who lacks specialized knowledge or expertise in a particular area or field.

Proposition

A proclamation or affirmation that presents a belief or assessment, capable of being true or untrue.