Under Which of the Following Circumstances Would It Be Advisable

question 100

Multiple Choice

Under which of the following circumstances would it be advisable for the auditor to confirm accounts payable with creditors?

• A) The internal accounting control over accounts payable is effective, and there is sufficient evidence on hand to minimize the risk of a material misstatement.
• B) The confirmation response is expected to be favorable, and accounts payable balances are of immaterial amounts.
• C) The creditor statements are not available and internal control over payables is deficient.
• D) The majority of accounts payable balances are with associated companies.

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Definitions:

Harassment

Behavior intended to disturb or upset that is repeated and unwanted, often creating a hostile or intimidating environment.

Gender

A social construct that refers to roles, behaviors, activities, expectations, and societal norms attributed to males and females or other identities.

At-Will Employment

A term of employment allowing either the employer or the employee to end the employment relationship at any time without prior notice.

Potential Employer

A potential employer is any individual, company, or organization that is in the process of considering or is capable of hiring a person to perform a specific job.