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:

Payroll Tax

Obligatory payments required from employers or employees, usually expressed as a proportion of the salaries employees receive.

Tax Burden

The total amount of taxes paid by individuals or businesses, expressed as a percentage of income or revenue, indicating the financial impact of taxation.

Payroll Tax

Taxes imposed on employers and/or employees, typically based on the wages or salaries paid, to fund social security and healthcare programs.

Bear Burden

To carry or endure an obligation, duty, or hardship, especially in the context of paying taxes.