Auditor Confirmation of Accounts Payable Balances at the Balance Sheet

question 89

Multiple Choice

Auditor confirmation of accounts payable balances at the balance sheet date may not need to be performed by the auditor because

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

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Definitions:

Secondary Process Thinking

A concept in psychoanalytic theory referring to the rational and conscious thought processes guided by reality.

Internalization

The process of incorporating the beliefs, attitudes, or values of others into one's own belief system.

Moral Standards

Rules or principles governing what is considered right or wrong behavior.

Superego

In Sigmund Freud’s theory, the internalization of the moral standards of society inculcated by the child’s parents.