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:

Market Segment

A subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs.

Attractive Opportunity

A business or investment prospect that is both appealing and likely to yield positive outcomes or profits.

Sales

The process of selling goods or services to customers in exchange for money or other valuable considerations.

Behavioral Segmentation

The division of a market into groups based on consumer behaviors, such as purchasing habits or product usage.