When determining sample sizes for accounts payable tests,
A) sample sizes rarely vary from audit to audit.
B) auditors must try to ensure that the population includes all potential payables.
C) defining the population is a simple procedure.
D) all of the above are correct.

Question

Quizplus · Accepted Answer

Sample sizes for accounts payable tests may vary from audit to audit depending on factors such as the level of risk and the materiality of the balances being tested. It is important for auditors to define the population of potential payables accurately, as this will inform their sample size determination. Ensuring that the population includes all potential payables can be a complex and challenging task, and therefore auditors must exercise care and diligence when undertaking this task.

When Determining Sample Sizes for Accounts Payable Tests