If Completeness Is a Concern for Accounts Payable, Auditors Will

question 75

Multiple Choice

If completeness is a concern for accounts payable, auditors will send accounts payable confirmations to:

• A)primarily vendors with large accounts payable balances.
• B)primarily vendors with small or zero accounts payable balances.
• C)all vendors.
• D)a random sample of all vendors.

---

Definitions:

Sealed-Bid

A bidding process where all bids are submitted confidentially to the auctioneer with no bidder knowing how much others have bid.

Lemons

In the context of economics, refers to products of lower quality that are difficult to distinguish from higher quality products before purchase. In a general context, it's a citrus fruit.

Expected Value

A statistical concept that calculates the average outcome of a random event when the process is repeated many times.

Dipstick

A tool used for measuring the quantity or level of fluid in a reservoir, notably oil in an engine.