The Auditor Decided to Test Accounts Payable by Sending Open-Ended

question 30

Multiple Choice

The auditor decided to test accounts payable by sending open-ended (blank) confirmations to selected vendors. The auditor's best approach in selecting the vendor accounts to confirm is to

• A)select vendor accounts with large balances.
• B)select vendor accounts at random in order to apply a statistical sampling procedure.
• C)select vendor accounts based on the number of purchases from vendors during the year.
• D)select vendor accounts that are past due.

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Definitions:

Alexander Hamilton

A Founding Father of the United States, known for his contributions as an economist, political philosopher, and as the first Secretary of the Treasury.

Thomas Jefferson

An American Founding Father, the principal author of the Declaration of Independence, and the third President of the United States, serving from 1801 to 1809.

John Jay

An American statesman, Patriot, diplomat, Founding Father, signatory of the Treaty of Paris, and first Chief Justice of the United States.

Constitutional Convention

A formal meeting called for the purpose of creating or revising a constitution.