The Auditor Decided to Test the Completeness of Accounts Payable

question 59

Multiple Choice

The auditor decided to test the completeness of 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:

Extended Contact Effect

The reduction of prejudice through indirect relationships, wherein knowing a member of an in-group has a friends in an out-group can lead to more positive attitudes towards that out-group.

Ingroup Favouritism

Behaviour that favours one’s own group over other groups.

Generalisation

The act or process of forming conclusions based on broad patterns, observations, or experiences that apply beyond specific instances.

Contact Hypothesis

A theory suggesting that under certain conditions, interpersonal contact is one of the most effective ways to reduce prejudice between majority and minority group members.