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.

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Definitions:

Wealth

the abundance of valuable resources or material possessions, or the control over such assets.

Risk And Change

Pertains to the inherent dangers and modifications that can occur in any business or personal scenario, impacting outcomes and strategies.

Values

Core beliefs or standards that guide behavior and decision-making processes in individuals or organizations.

Evaluating Information

The process of critically assessing the validity, relevance, and reliability of data or facts.