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The Auditors May Decide to Confirm Accounts Payable on an Audit

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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.


Definitions:

Full Rotation

The movement of an object in a circular path, completing 360 degrees around an axis.

PTO Driveshafts

PTO driveshafts, short for Power Take-Off driveshafts, are components used to transfer mechanical power from a vehicle, like a tractor, to another piece of equipment or machinery.

Solid Steel Stock

A form of steel material that is completely solid, used for a variety of industrial and construction applications.

Precision Balancing

A process of adjusting the mass distribution of a rotating component so that it operates without causing undue vibration.

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