Auditors May Choose Not to Confirm Accounts Payable Because

question 46

Multiple Choice

Auditors may choose not to confirm accounts payable because:

• A)Confirmation obtains evidence identical to that obtained by cutoff tests.
• B)Other reliable external evidence to support the balances is likely to be available.
• C)A reading of the corporate minutes reveals that confirmation is unnecessary.
• D)The balances due will have changed between the year-end and the date of confirmation.

---

Definitions:

Standard Abbreviation

A universally accepted shortened form of a word or phrase used to ensure clarity and consistency in written communication.

Bld P

Blood Pressure; the force exerted by circulating blood on the walls of blood vessels.

Outpatient Surgical Procedure

A surgical operation performed on patients who are not required to stay in the hospital overnight.

Insurance Company

A financial institution that provides a range of insurance policies to protect individuals and businesses against potential loss or damage.