58.In which of the following circumstances would the use of the negative form of accountsreceivable confirmation most likely be justified?a.A substantial number of accounts may be in dispute and the accounts receivable balance arisesfrom sales to a few major customers.b.A substantial number of accounts may be in dispute and the accounts receivable balance arisesfrom sales to many customers with small balances.c.A small number of accounts may be in dispute and the accounts receivable balance arises fromsales to a few major customers.d.A small number of accounts may be in dispute and the accounts receivable balance arises fromsales to many customers with small balances.D59.To reduce the risks associated with accepting e-mail responses to requests for confirmation of Show
accounts receivable, an auditor most likely would60.To reduce the risks associated with accepting fax responses to requests for confirmations of Get answer to your question and much more accounts receivable, an auditor most likely would Under what circumstances would a positive confirmation of accounts receivable be preferable to a negative confirmation?Under what circumstances would a positive confirmation of accounts receivable be preferable to a negative confirmation? and/or a large number of errors are anticipated. In such cases, positive confirmation will be used as it is a high-quality evidence being provided directly from the customers.
Under which of the following circumstances should an auditor consider confirming?Under which of the following circumstances should an auditor consider confirming the terms of a large complex sale? When the combined assessment of inherent and control risk over the sale is high.
What is the main reason for confirming accounts receivable?The accounts receivable confirmation is sent to the customers to confirm whether the balances on the auditee business' ledgers match the balances on the customer's ledgers. In case these balances do no match, the valuation on the ledgers should be questioned.
Under what circumstances is it acceptable to confirm accounts receivable prior to the statement of financial position dates?It is acceptable to confirm accounts receivable prior to the balance sheet date if the internal controls are adequate and can provide reasonable assurance that sales, cash receipts, and other credits are properly recorded between the date of the confirmation and the end of the accounting period.
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In which of the following circumstances would the use of the positive form of accounts receivable confirmation most likely be justified?
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