Curdco is a company that runs a chain of fast-food restaurants. The company has a centralized operating style and managers of individual restaurants have very limited decision-making powers on day-to-day operational matters. The company's centralized administration is responsible for the buying of food, the payment of staff, the maintenance and cleaning of restaurants by staff employed by a national agency and all other matters relating to the running of the business. The company has good internal controls over purchasing. Inventory counts are conducted at each restaurant at the year end. Your firm has recently been appointed as auditor to Curdco.

Required:
(a) List the account headings you would expect to find in Curdco's schedule of accounts payable and accrued expenditure.
(b) Describe and give reasons for the audit tests you would carry out to obtain audit evidence for Curdco's accounts payable and accrued expenditure.
(c) Explain the difficulties faced by auditors, and the decisions that auditors have to make, in conducting direct confirmations of accounts payable.