Confirmation of accounts receivable provides absolute assurance that no lapping or other manipulation affecting accounts receivable is being carried on.

Question

Quizplus · Accepted Answer

Confirmation of accounts receivable is a useful audit procedure, but it does not provide absolute assurance against lapping or other manipulations, as these schemes can involve complex fraud that confirmation alone might not uncover.

Confirmation of Accounts Receivable Provides Absolute Assurance That No Lapping