Confirming accounts receivable is an accepted audit procedure whenever:
A) they are material in amount.
B) it is reasonable to presume debtors will respond.
C) they are material and it is reasonable to presume debtors will respond.
D) a large number of small balances is involved.

Question

Quizplus · Accepted Answer

Confirming accounts receivable is an accepted audit procedure when they are material in amount and it is reasonable to presume debtors will respond. This ensures the auditor can rely on the responses to confirm the existence and accuracy of the reported receivables.

Confirming Accounts Receivable Is an Accepted Audit Procedure Whenever