Auditors Normally Test Accounts Payable Balances By

question 83

Multiple Choice

Auditors normally test accounts payable balances by:

• A) sending out negative confirmations.
• B) sending out positive confirmations.
• C) matching supplier invoices to receiving reports.
• D) matching supplier invoices to cash disbursements.

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Definitions:

Seasonal Indices

numerical values used to adjust data for seasonal effects, enabling comparison across different time periods by accounting for regular patterns of change.

Raw Data

Unprocessed and unanalyzed data collected directly from a source, without any manipulation or treatment.

Regular Time Intervals

Fixed or consistent periods between events, measurements, or observations, facilitating comparison or synchronization.

Trend Projection Equation

A mathematical formula used to forecast future values based on historic data trends, often applied in time series analysis.