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:

Opportunity Cost

The cost of missing out on the next best alternative when making a decision.

Specialize And Trade

The economic practice where individuals or entities focus on a limited scope of production to increase efficiency and then exchange their outputs for varied goods or services.

Export

The process of sending goods or services produced in one country to another country for sale or trade.

Import

Products or services that are transported into a country from another with the intent to sell them.