Accounting Multiple Choice Question – 20 August 2026

Which ONE of the following are reasons why the auditors might NOT seek direct confirmation of balances due from suppliers?

Select ONE answer:

1. To obtain third-party evidence
2. The auditors suspect that the client is deliberately understating payables
3. The internal controls relating to purchases are weak
4. Supplier statements are unavailable

Show your workings to arrive at your answer, and explain and justify your reasons:

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This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 1

1. Correct – Although a payables circularisation does provide third party evidence, it is unnecessary on those grounds alone, because supplier statements provide third party evidence as well. Therefore, a payables circularisation will only be needed where there is some problem, such as those described in options 2, 3 and 4.
2. Not correct
3. Not correct
4. Not correct

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