A confirmation is performed less frequently for accounts payable than it is for accounts receivable because
A) only a negative confirmation can be sent.
B) confirmation offers no assurance that unrecorded liabilities will be discovered.
C) it is only performed when detection risk is high.
D) it specifies the amount due to the supplier.

Question

Quizplus · Accepted Answer

Accounts payable represents the company's liabilities to its suppliers, and its recording is primarily internally controlled. Detecting unrecorded liabilities is difficult, and confirmation offers no assurance that unrecorded liabilities will be discovered. Therefore, confirming accounts payable is generally less frequent than confirming accounts receivable, where the confirmation process may detect unrecorded receivables that the company may have missed.

A Confirmation Is Performed Less Frequently for Accounts Payable Than