The 2021 financial statement audit of OMG company began when the trial balance was received from management. You were assigned to audit the accounts payable of the entity. The schedule of liabilities to vendor showed that the company has only five suppliers which account for 90% of the total accounts payable balance. Thus, the audit team has decided to send confirmation letters to those vendors. Upon your further review, you have noted that the amounts provided in the schedule and the trial balance does not balance, but you have noted that the difference is below the materiality threshold. Considering the facts provided, which of the following statements is true?
The 2021 financial statement audit of OMG company began when the
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Since the difference is below materiality, there is no need to change samples.
Negative confirmation letters may be sent to the suppliers even if we did not rely on controls.
The sampling technique used by the audit associate is invalid because it involves bias.
There is a sampling risk associated with the
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