A sample of positive confirmations is mailed for material accounts receivable balances.Frequently there is a lack of response.Which of the following is not an acceptable alternative procedure?
A)Subsequent collection.
B)Inquiry of management.
C)Mailing second and third confirmations.
D)Examination of supporting documents.

Question

Quizplus · Accepted Answer

Inquiry of management is not an acceptable alternative procedure because it involves relying solely on management's response without any independent verification of the balances. Subsequent collection, mailing second and third confirmations, and examination of supporting documents are all acceptable alternative procedures that provide independent verification of the balances.

A Sample of Positive Confirmations Is Mailed for Material Accounts