Which of the following strategies most likely could improve the response rate of the confirmation of accounts receivable?

Question

Quizplus · Accepted Answer

Choice "A" is correct. Some accounting systems facilitate the confirmation of single transactions rather than entire balances. In such cases, inclusion of statements of account showing details of the balances being confirmed makes it easier for the customers to confirm the balances, and therefore may improve the overall response rate. Choice "B" is incorrect. Restricting the selection of accounts to be confirmed to those customers with large balances would not necessarily improve the response rate, as there is no particular relationship between balance size and the likelihood of response. Choice "C" is incorrect. Requesting customers to respond to the confirmation requests electronically would not necessarily improve the response rate. It also might not be appropriate to request responses in electronic form, since the auditor will still request that the original be mailed back. Choice "D" is incorrect. Notifying the recipients that second requests will be mailed would not necessarily improve the response rate, since the consequence of not responding (receiving a second request) is relatively minor.

Which of the Following Strategies Most Likely Could Improve the Response