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.

---

Definitions:

Freewheeling

Engaging in an activity without restrictions or a fixed plan, allowing for creativity and spontaneity.

Restricted Communication

Limitations placed on the exchange of information, often to preserve confidentiality or for the purpose of control within organizations.

Maintenance Activity

Maintenance Activity involves tasks and operations carried out to keep machinery, equipment, or systems operating efficiently and preventing breakdowns or failures.

Centralized Communication

A communication structure where all decisions and messages are passed through a central point or person within an organization.