You are performing an audit of Hawk Company.In evaluating the accounts payable balance you are concerned with the completeness assertion.Which of the following audit procedures best satisfy your concern?
A)Send confirmations to only vendors with large balances.
B)Send confirmations to vendors with large, active, zero balance accounts and a representative sample of all others.
C)Send confirmations to vendors chosen from sample stratified by the dollar balance.
D)Send confirmations to all vendors.

Question

Quizplus · Accepted Answer

Sending confirmations to vendors with large, active, zero balance accounts and a representative sample of all others would best satisfy the completeness assertion. This ensures that the auditor is confirming balances with vendors who are more likely to have significant transactions with the company while also including a representative sample of all vendors to mitigate the risk of material misstatements in the accounts payable balance.

You Are Performing an Audit of Hawk Company