Auditors may choose not to confirm accounts payable because:
A)Confirmation obtains evidence identical to that obtained by cutoff tests.
B)Other reliable external evidence to support the balances is likely to be available.
C)A reading of the corporate minutes reveals that confirmation is unnecessary.
D)The balances due will have changed between the year-end and the date of confirmation.

Question

Quizplus · Accepted Answer

Other reliable external evidence, such as vendor statements or invoices, may be available to support the balances in accounts payable, making confirmation unnecessary. Additionally, if confirmation is deemed necessary, the auditor may want to confirm a sample of the accounts rather than all of them due to the cost and time involved in confirming all accounts payable balances.

Auditors May Choose Not to Confirm Accounts Payable Because