The Auditor Decided to Test Accounts Payable by Sending Confirmations

question 14

Multiple Choice

The auditor decided to test accounts payable by sending confirmations to selected vendors. The auditor's best approach in selecting the vendor accounts to confirm is to __________.

• A) select vendor accounts with large balances
• B) select vendor accounts at random in order to apply a statistical sampling procedure
• C) select vendor accounts with small or zero balances
• D) select vendor accounts that are past due

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Definitions:

Wax

Water-repellent substance that is a complex, varying mixture of lipids with long fatty acid tails bonded to long-chain alcohols.

Vascular Tissue

Specialized tissue in plants that conducts water and nutrients through the plant body.

Monocots

A major group of flowering plants (angiosperms) characterized by having one seed leaf (cotyledon), such as grasses, lilies, and palms.

Cotyledon

Seed leaf of a flowering plant embryo.