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:

Recording Process

The systematic method of capturing and documenting financial transactions in the accounting records of an organization.

Journal

A detailed record where all financial transactions of a business are initially recorded, serving as the primary source of accounting data.

Ledger Accounts

Financial records that provide a detailed account of all the transactions related to a particular item over a period.

Journal

A book or electronic record where all transactions are recorded in chronological order.