According to Auditing Standards, Accounts Receivable Confirmations Are Required to Be

question 67

Multiple Choice

According to auditing standards, accounts receivable confirmations are required to be used in which of the following situations?

• A) On every audit engagement.
• B) If the client agrees in writing to the procedure.
• C) If the balance is material.
• D) If environmental risk is low.

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Definitions:

Undue Influence

Undue Influence occurs when one party uses its position of power over another to induce the latter into making a legal agreement that they would not have made under normal circumstances.

Descent and Distribution

Refers to the legal process through which property is transferred from a deceased person to their heirs or beneficiaries.

Intestate

Dying without a legal will, leaving one's estate to be divided according to state laws.

Intestate

The condition of dying without a valid will, resulting in an individual's assets being distributed according to state laws.