Stanford Seeles, engagement partner for the audit of the Torgesen-Tate Corporation, is planning the nature, timing, and extent of audit procedures for accounts payable. Prior year working papers reveal that confirmation requests were mailed to 100 of Torgesen-Tate's 1,000 suppliers, the sample consisting mostly of large dollar balances. Management and Seeles spent a substantial number of hours resolving rather minor differences between the confirmation replies and Torgesen-Tate's accounting records. Alternative audit procedures were used for those suppliers who did not respond to the confirmation requests.

Required:

1. What are the audit objectives Seeles ought to consider when planning audit procedures?

2. Discuss circumstances that would compel Seeles to confirm payables. Is Seeles required to confirm payables?

3. Discuss why large dollar balances might not be an efficient basis for selecting accounts to confirm. Suggest a more efficient basis.