You Are Performing an Audit of Hawk Company

question 36

Multiple Choice

You are performing an audit of Hawk Company. In evaluating the accounts payable balance you are concerned with the completeness assertion. Which of the following audit procedures best satisfy your concern?

• A) send confirmations to only vendors with large balances
• B) send confirmations to vendors with large, active, zero balance accounts and a representative sample of all others
• C) send confirmations to vendors chosen from sample stratified by the dollar balance
• D) send confirmations to all vendors

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Definitions:

Exclusion

The act of preventing certain groups or individuals from participating or being included within an activity, process, or benefit.

Inclusion

The practice or policy of providing equal access to opportunities and resources for people who might otherwise be excluded or marginalized.

Monopsonist

A market condition where there is only one buyer for a particular product or service, giving the buyer significant control over prices.

Labor Market

The supply and demand for workers, in which employers seek to hire labor and workers find employment. The labor market dynamics influence wages and employment levels.