An auditor mailing positive confirmations is an example of _______.
A)a compilation engagement
B)a review engagement
C)a substantive procedure
D)a test of internal control

Question

Quizplus · Accepted Answer

An auditor mailing positive confirmations is an example of a substantive procedure, which is a type of audit procedure designed to obtain evidence about the completeness, accuracy, and validity of financial statement assertions. The objective of a positive confirmation is to obtain direct verification of the existence, completeness, and accuracy of account balances or transactions from independent third-party sources. A compilation engagement is a type of service where the accountant assists in presenting financial information in the form of financial statements without providing any assurance. A review engagement involves obtaining limited assurance that the financial statements are free from material misstatement. A test of internal control is a procedure designed to obtain evidence about the effectiveness of internal controls in preventing or detecting material misstatements in the financial statements.

An Auditor Mailing Positive Confirmations Is an Example of _______