The following questions concern accumulating evidence in the acquisition and payment cycle. Choose the best response.

a. In comparing the confirmation of accounts payable with suppliers and confirmation of accounts receivable with debtors, the true statement is that

(1) confirmation of accounts payable with suppliers is a more widely accepted auditing procedure than is confirmation of accounts receivable with debtors.

(2) statistical sampling techniques are more widely accepted in the confirmation of accounts payable than in the confirmation of accounts receivable.

(3) as compared with the confirmation of accounts payable, the confirmation of accounts receivable will tend to emphasize accounts with zero balances at the balance sheet date.

(4) it is less likely that the confirmation request sent to the supplier will show the amount owed while the request sent to the debtor will show the amount due.

b. Which of the following audit procedures is best for identifying unrecorded trade accounts payable?

(1) Examining unusual relationships between monthly accounts payable balances and recorded cash payments

(2) Reconciling vendors' statements to the file of receiving reports to identify items received just prior to the balance sheet date

(3) Reviewing cash disbursements recorded subsequent to the balance sheet date to determine whether the related payables apply to the prior period

(4) Investigating payables recorded just prior to and just subsequent to the balance sheet date to determine whether they are supported by receiving reports

c. In auditing accounts payable, an auditor's procedures most likely would focus primarily on management's assertion of

(1) existence or occurrence.

(2) completeness.

(3) presentation and disclosure.

(4) valuation or allocation.