In confirming accounts receivable,an auditor decided to confirm customers' account balances rather than individual invoices.Which of the following most likely would be included with the client's confirmation letter?
A) An auditor-prepared letter explaining that a nonresponse may cause an inference that the account balance is correct.
B) A client-prepared letter reminding the customer that a nonresponse will cause a second request to be sent.
C) An auditor-prepared letter requesting the customer to supply missing and incorrect information directly to the auditor.
D) A client-prepared statement of account showing the details of the customer's account balance.
Correct Answer:
Verified
Q47: In the confirmation of accounts receivable, the
Q51: Which of the following misstatements is not
Q52: Auditors sometimes use ratios as audit evidence.
Q53: To achieve good internal control,which department should
Q56: If the objective of a test of
Q61: Smith is engaged in the audit of
Q65: To reduce the risks associated with accepting
Q66: The confirmation of customers' accounts receivable rarely
Q77: Confirmation is most likely to be a
Q80: When a sample of sales transactions recorded
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents