Question 3 Rizal is the auditor of the Reema Industries Bhd. He is considering the audit work to be performed in the accounts payable area for the current year engagement. The prior year working papers show that confirmation requests were mailed to 200 of Reema's 2,000 suppliers. The selected suppliers were based on Rizal's samples, which was designed to select accounts with large balances. A substantial number of hours were spent by Reema and Rizal in resolving relatively minor differences between the confirmation replies and Reema's accounting records. Alternative audit procedures were used for suppliers who did not respond to the confirmation requests. Required: (a) Discuss the accounts payable audit objectives that Rizal must consider in determining the audit procedures to be followed. (6 marks) (b) Discuss situations in which Rizal should use accounts payable confirmations, and discuss whether Rizal is required to use them. (7 marks) (c) Discuss why the use of large-value balances as the basis for selecting accounts payable for confirmation might not be the most efficient approach, and indicate the more efficient procedures that could be used to select accounts payable for confirmation. (7 marks) (Total 20 marks)