Hoang Is Engaged in the Audit of a Power Company

Multiple Choice

Hoang is engaged in the audit of a power company that supplies power to a residential community.All accounts receivable balances are small and the internal control structure is effective.Customers are billed twice monthly.In order to obtain evidence with regards the valuation and allocation assertion of the accounts receivable balances as at balance date, Hoang would most likely:

A) send positive confirmation requests.
B) examine evidence of subsequent cash receipts.
C) use statistical sampling instead of sending confirmation requests.
D) send negative confirmation requests.