When determining the methodology for designing tests of details of balances for accounts payable,
A) the focus by many companies on improving their supply-chain management activities has led to numerous changes in the design of systems used to initiate and record acquisition and payment activities.
B) it is relatively inexpensive to audit accounts payable.
C) performance materiality for accounts payable is set relatively low.
D) inherent risk is often set at low.

Question

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The focus on improving supply-chain management activities has led to changes in the design of systems used to initiate and record acquisition and payment activities, which can affect the methodology for designing tests of details of balances for accounts payable.

When Determining the Methodology for Designing Tests of Details of Balances