Two assertions for which confirmation of accounts receivable balances provides primary evidence are:

Question

Quizplus · Accepted Answer

Choice "C" is correct. Two assertions for which the confirmation of accounts receivable balances provides primary evidence are rights and obligations (does the client have a right to the receivable?) and existence (does the receivable really exist?). Choices "A", "B", and "D" are incorrect. Confirmation of receivables does not provide evidence about completeness, since the sample begins with recorded receivables. (To test completeness, we would be looking for unrecorded receivables). In addition, confirmation of receivables does not necessarily provide evidence related to the valuation assertion. While the existence of the receivables is confirmed, their collectibility is not.

Two Assertions for Which Confirmation of Accounts Receivable Balances Provides