To reduce the risks associated with accepting electronic responses to requests for confirmation of accounts receivable, an auditor most likely would:
A)validate the sender of electronic information.
B)examine subsequent cash receipts for the accounts in question.
C)consider the electronic responses to the confirmations to be exceptions.
D)mail second requests to the electronic respondents.

Question

Quizplus · Accepted Answer

Validating the sender of electronic information can reduce the risk of accepting fraudulent confirmations. This can be done through verifying the sender's identity and credentials, and using secure communication channels.

Answer: B
 Examining subsequent cash receipts can provide additional evidence that the accounts receivable balances are valid and accurate, which can reduce the risk of accepting false confirmations.

Answer: C
 Considering electronic responses as exceptions can increase the risk of overlooking discrepancies and errors, as well as potential fraud. Treating all electronic responses as exceptions without proper follow-up can lead to unreliable audit evidence.

Answer: D
 Mailing second requests to electronic respondents may not reduce the risks associated with accepting electronic responses, as the same risks may still be present. However, sending second requests can serve as a follow-up to non-responses or incomplete responses, and may increase the chances of obtaining reliable audit evidence.

To Reduce the Risks Associated with Accepting Electronic Responses to Requests