Multiple Choice
The composition of Oak and Company's accounts receivable are as follows: Over $250,000 - 5 accounts
Between $25,000 and $250,000 - 80 accounts
Less than $25,000 - 200 accounts
The best confirmation strategy for the auditor is:
A) Positive confirmations on a sample of all 285 accounts.
B) Positive confirmations on all a sample of all accounts over $25,000; negative confirmations on a sample of accounts less than $25,000.
C) Positive confirmations on all 5 accounts over $250,000; positive confirmations on a sample of the accounts between $25,000 and $25,000; negative confirmations on a sample of accounts less than $25,000.
D) Positive confirmations on all 5 accounts over $250,000; negative confirmations on a sample of the accounts less than $250,000.
Correct Answer:
Verified
Correct Answer:
Verified
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