The auditor decided to test the completeness of accounts payable by sending confirmations to selected vendors.The auditor's best approach in selecting the vendor accounts to confirm is to __________.
A)select vendor accounts with large balances
B)select vendor accounts at random in order to apply a statistical sampling procedure
C)select vendor accounts with small or zero balances
D)select vendor accounts that are past due

Question

Quizplus · Accepted Answer

Selecting vendor accounts with small or zero balances ensures that all vendors are accounted for and there are no omitted vendors. Selecting only vendor accounts with large balances, past due accounts or applying a statistical sampling procedure may not ensure completeness of accounts payable.

The Auditor Decided to Test the Completeness of Accounts Payable