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You are the audit senior for the audit of Grosse Ltd$.$ and have been given the audit file to review. The reporting date is December $31,2023,$ and the materiality for the client has been set at $$200,000.$ You obtained the information below from your review of the audit

file. The balance noted for accounts payable in the general ledger at December $31,2023,$ is $$158,000,$ which compares with a balance as at December $31,2022,$ of $$342,000.$ The audit assistant noted in the file: "Because the accounts payable balance is immaterial in the current year, only limited work is necessary."

The only work performed by the audit assistant was to select the three largest payables from the client's detailed purchases ledger $($which had been compared with the general ledger$)$ and compare the balances with photocopies of supplier statements.Which of the following comments should Melissa have with respect to the work performed? $($Several choices may be correct.$)$

Because the accounts payable balance is not material, no further work is required.

The auditor should ask management why accounts payable has decreased by $$184,000$ between December $31,2022,$

and December $31,2023.$ If the explanation appears reasonable, no further work is necessary.

The accounts payable balance may be immaterial compared to the overall materiality, but it is probably not immaterial compared to the materiality allocated to accounts payable.

Potential errors in relation to accounts payable may be material. This is because the main risk associated with

accounts payable is overstatement.

The sample selected is not appropriate. It would be preferable for the auditor to use statistical techniques to select the sample size.

The balances of the creditors selected for testing should be reconciled to the original suppliers' statements.

Selection of the three largest balances is appropriate because the main risk associated with payables is

understatement.

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