The most reliable evidence from confirmations is obtained when they are sent
A)several months before the year-end,so the auditor will have adequate time to perform alternate procedures if they are required.
B)at various times throughout the year to different sections of the sample,so that the entire sample is representative of account balances scattered throughout the year.
C)as close to the balance sheet date as possible.
D)at various times throughout the year to the same group in the sample,so that the sample will not have a time bias.

Question

Quizplus · Accepted Answer

The most reliable evidence from confirmations is obtained when they are sent as close to the balance sheet date as possible. This helps to minimize the risk of material misstatement and ensures that the information obtained is relevant and reliable. Sending confirmations several months before the year-end (Choice A) may be too early and may lead to outdated information, while sending confirmations at various times throughout the year (Choices B and D) may introduce time bias or leave out important account balances.

The Most Reliable Evidence from Confirmations Is Obtained When They