Multiple Choice
When the positive form of accounts receivable confirmation is used and no response is received, the auditor should normally:
A) assume the account is in error.
B) assume the account is correct.
C) send a second request.
D) send a negative confirmation.
E) contact the customer by telephone.
Correct Answer:
Verified
Correct Answer:
Verified
Q8: The allowance for uncollectible accounts is an
Q9: Confirming accounts receivable is a generally accepted
Q10: A company has a policy of rotating
Q11: When numerous exceptions are found, or insufficient
Q12: Cash collection may precede revenue recognition, resulting
Q14: Controls designed to reduce the risk of
Q16: The bonding of employees will normally be
Q17: Periodic bank reconciliations should be performed by
Q18: The blank form confirmation is a way
Q42: In most cases there is a lesser