Multiple Choice
Under which of the following circumstances would it be advisable for the auditor to confirm accounts payable with creditors?
A) The internal accounting control over accounts payable is effective, and there is sufficient evidence on hand to minimize the risk of a material misstatement.
B) The confirmation response is expected to be favorable, and accounts payable balances are of immaterial amounts.
C) The creditor statements are not available and internal control over payables is deficient.
D) The majority of accounts payable balances are with associated companies.
Correct Answer:
Verified
Correct Answer:
Verified
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