Explain why it is common for auditors to send confirmation requests to vendors with zero balances on the clients accounts payable listing but uncommon to follow the same approach in verifying accounts receivable ...

Unless evidence is discovered which indicates that a different approach shou ...

Explain why it is common for auditors to send confirmation requests to vendors with zero balances on

Question:

Explain why it is common for auditors to send confirmation requests to vendors with “zero balances” on the client’s listing but uncommon to follow the same approach in verifying accounts receivable.

Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...