When auditors choose to send confirmations of accounts payable, accounts with _______.
A)zero or small balances should be among those selected for negative confirmation because they may be more understated than accounts with large balances
B)zero or small balances should be ignored because they are likely immaterial
C)zero or small balances should be among those selected for confirmation because they may be more understated than accounts with large balances
D)extremely large balances should be among those selected for confirmation because they may be more understated than accounts with smaller balances

Question

Quizplus · Accepted Answer

It is important to send confirmations to accounts with zero or small balances because they may be more likely to be understated than accounts with large balances. This is because small amounts may be more easily overlooked or intentionally omitted, leading to misstatements in financial statements. Therefore, confirming these accounts can help detect any errors or fraud.

When Auditors Choose to Send Confirmations of Accounts Payable, Accounts