The Auditors May Decide to Confirm Accounts Payable on an Audit

question 36

Essay

The auditors may decide to confirm accounts payable on an audit engagement.
a.Describe two reasons why the confirmation of accounts payable is not a presumptively mandatory auditing procedure.
b.Describe the audit circumstances in which the auditors are likely to decide to confirm accounts payable.
c.Describe the types of accounts payable the auditors are likely to select for confirmation.

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Definitions:

Intense

A term describing a high degree of strength, concentration, or seriousness of something like emotions, situations, or activities.

Emotions

Complex psychological states that involve three distinct components: a subjective experience, a physiological response, and a behavioral or expressive response.

Lethargic

Describes a state of sluggishness, drowsiness, or lack of energy.

Negative Affect

A mood dimension that consists of emotions such as nervousness, stress, and anxiety at the high end and relaxation, tranquility, and poise at the low end.