The auditor uses the "external confirmation" procedure when he
A)obtains a written response directly from a third party in electronic form
B)obtains a written response directly from a third party in paper form
C)considers the third party not to be independent of the client
D)has had experience to suggest that the replies are not reliable
E)wants to obtain evidence about internal processes in the company
F)both A and B
G)both C and D

Question

Quizplus · Accepted Answer

External confirmation procedure involves obtaining a written response directly from a third party, which can be in either electronic or paper form. Therefore, options A and B are correct. Options C and D are not relevant to the external confirmation procedure. Option E is incorrect because the external confirmation procedure is used to obtain evidence from external sources, not internal processes. Therefore, the best choice is F.

The Auditor Uses the "External Confirmation" Procedure When He