If Completeness Is a Concern for Accounts Payable, Auditors Will

question 62

Multiple Choice

If completeness is a concern for accounts payable, auditors will send accounts payable confirmations to

• A) Primarily vendors with large accounts payable balances.
• B) Primarily vendors with small or zero accounts payable balances.
• C) All vendors.
• D) A random sample of all vendors.

---

Definitions:

Accounts Receivable

Funds that customers owe to a business for products or services already received but not yet compensated for.

Cash Collections

The process of managing and collecting payments from customers for goods or services provided, crucial for maintaining a company’s liquidity.

Industrial Gas

Gases produced for use in industrial processes, such as oxygen for steel-making or nitrogen and argon for welding.

Merchandise Inventory

Items held for sale in the ordinary course of business, often quantified for accounting and operational purposes.