The Auditors May Decide to Confirm Accounts Payable on an Audit

question 36

Essay

The auditors may decide to confirm accounts payable on an audit engagement.
a.Describe two reasons why the confirmation of accounts payable is not a presumptively mandatory auditing procedure.
b.Describe the audit circumstances in which the auditors are likely to decide to confirm accounts payable.
c.Describe the types of accounts payable the auditors are likely to select for confirmation.

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Definitions:

Industrial Country

Refers to a nation with a developed economy characterized by significant industrial activity, advanced technological infrastructure, and a high standard of living.

GDP

Gross Domestic Product, a monetary measure of the market value of all final goods and services produced within a country during a specified period.

Health Care

The organized provision of medical services to individuals or a community including preventive, diagnostic, therapeutic, and palliative interventions.

Average American

Refers to a statistical concept often used to describe the typical individual in the United States in terms of income, behavior, or traits based on averages.