The auditors obtain audit evidence for accounts receivable by using positive or negative confirmation requests. Under which of the following circumstances might the negative form of the accounts receivable confirmation be useful?A. A substantial number of accounts are in disputes.B. The combination of inherent risk and control risk is high.C. Client records include a large number of relatively small balances.D. The auditors believe that recipients of the requests are unlikely to give them consideration.

Question

11-11-2019
Business

contestada

The auditors obtain audit evidence for accounts receivable by using positive or negative confirmation requests. Under which of the following circumstances might the negative form of the accounts receivable confirmation be useful?A. A substantial number of accounts are in disputes.B. The combination of inherent risk and control risk is high.C. Client records include a large number of relatively small balances.D. The auditors believe that recipients of the requests are unlikely to give them consideration.

Respuesta :

Otras preguntas

If y=3/x then y'=?A)-y/xB)y/xC)-x/yD)-3x/yE)-y/3x

the groundskeeper at Orangefield must mow a circular field the diameter of the field is 250 yards what is the area of the field that the groundskeeper must mow.

exposure to second hand smokes carries the same long term effects as smoking

Lorena wants to become a surgeon. Based on the passage, what is the best procedure for her to follow in high school to help her get into a college with a pre-me

Read the sentence. My science teacher explained how the weather cycle works using an illustration. Which is the best revision of this sentence? My science te

The destruction of the Berlin Wall and the breakup of the Soviet Union signify the: A. End of the Cold War B. Collapse of the Taliban C. Strength of the Warsaw

What is one way that a negative trade balance can be converted into a $0 balance of payments?

A triangle has an area of 9m2 and a base of 6m. how do I find the height of this triangle?

The journal entry used to record the issuance of an interest-bearing note for the purpose of borrowing funds for the business is

Solve for x: −5|x + 1| = 10 x = 0 x = −3 and x = 1 x = −1 and x = 3 No solution

patfrauen patfrauen · Answer 1 · 2019-11-12T23:11:12+01:00

Answer:

C

Explanation:

A. Substantial number of accounts does not specify if these are large or small amounts, and large amounts would need to have a positive confirmation.

B. If these risks are high, there needs to be postivie confirmation from the clients of the company since there is high risk involved.

D. If the clients are not going to give them consideration, and the point of a negative confirmation is that it is a valid receivable, there is no way of knowing if they didn't reply if its correct or if they just didn't reply.