A Client Has a Separate Sales Group for Its Largest

Multiple Choice

A client has a separate sales group for its largest "preferred" customers. This is a select group of customers that normally make purchases in excess of $250,000 and often have accounts receivable balances in excess of $1 million. Which of the following audit procedures would the auditor most likely perform?

A) Prepare a schedule of purchases and payments for these customers.
B) Send out negative confirmations on a large sample of these customers.
C) Inquire of the sales manager regarding the accounts receivable terms.
D) Send out positive confirmations on a large sample of these customers.