Question

The most conclusive information to support supplier account balances is obtained by?

1) Reviewing the vendor statements obtained from the accounts payable clerk.
2) Obtaining confirmations of balances from the suppliers.
3) Performing analytical account analysis.
4) Interviewing the accounts payable manager to determine the internal controls maintained over accounts payable processing.

Answer 1

The most conclusive information to support supplier account balances is obtained by obtaining confirmations of balances from the suppliers.

Step-by-step explanation:

Supplier account balances can be supported by obtaining confirmations of balances from the suppliers. This involves sending a request to the suppliers asking them to confirm the amounts owed by the company. The supplier's response is considered the most reliable and conclusive information to support the account balances.

An example of this process is when a company sends a confirmation letter to each supplier, asking them to verify the amount owed by the company. The supplier then verifies the balance and sends the response directly to the auditor or accounts payable department.