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:

Exhaustion Phase

The exhaustion phase is the final stage of the General Adaptation Syndrome, where the body's resources are depleted following prolonged exposure to stress, leading to decreased stress tolerance and possible health issues.

Emotion-focused Coping

Strategies aimed at managing and dealing with the emotions associated with stressful situations rather than confronting the problems directly.

Problem-focused Coping

A coping strategy aimed at addressing the cause of stress in a practical way by either removing the stressor or reducing its impact.

Aerobic Exercise

Physical activity that increases the heart rate and the body’s use of oxygen, thereby improving overall fitness.