You Are Performing an Audit of Hawk Company

question 129

Multiple Choice

You are performing an audit of Hawk Company. In evaluating the accounts payable balance you are concerned with the completeness assertion. Which of the following audit procedures best satisfies your concern?

• A) Send confirmations to only vendors with large balances.
• B) Send confirmations to vendors with large, active, zero balance accounts and a representative sample of all others.
• C) Send confirmations to vendors chosen from sample stratified by the dollar balance.
• D) Send confirmations to all vendors.

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Definitions:

Corporate Leaders

Executives and high-level managers who have significant responsibility in guiding a corporation's strategy and operations.

Ethical Leadership

A leadership style guided by moral principles and values aiming to influence organizational behavior positively.

Stakeholders

Individuals or groups that have an interest, stake, or investment in a business or project and can be affected by its outcomes.

Moral Victories

Moral Victories are outcomes where an individual or group may not achieve their ultimate goal but considers the endeavor successful due to adherence to ethical principles or gaining respect.