Question

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.

Answer 1

B is the corect answer because obtaining reliable external evidence to support the balance iis satisfactory and also other options are wrong too .lets take one by one

option A

Cutoff testing is an Audit procedures are used to determine whether transactions have been recorded within the correct reporting period .Which cannot confirms the balance

option C

corporates minutes is an internal evidence which is less reliable and mentioning in corporate minutes cant justify the confirmation is unnecessary

option D

the reason is not an excuse because we can do reverse working by reconcilation and obtain the balance on that date