Under Which of the Following Circumstances Would It Be Advisable

question 114

Multiple Choice

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

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

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Definitions:

Expiratory Wheezes

High-pitched sounds produced during exhalation, often indicating narrowed airways in the lungs.

Friction Rub

An abrasive sound heard during auscultation, typically associated with the movement of inflamed surfaces against one another, such as in pleurisy or pericarditis.

Coarse Rhonchi

Low-pitched, rattling lung sounds that suggest blockage or secretions in the large airways; often heard in conditions such as chronic bronchitis.

Field Of Vision

The entire area that an individual can see without moving the eyes, important in diagnosing and treating eye conditions.