When Positive Confirmations Have Been Used, It Is Normally Desirable

question 12

Multiple Choice

When positive confirmations have been used, it is normally desirable to account for unconfirmed balances with alternative procedures:

• A) even if the amounts are small.
• B) if it does not increase the audit firm's costs.
• C) only if the amounts are large.
• D) only if the amounts are material.

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Definitions:

Shareholders Wealth

The total value of an individual's or entity's ownership stake in a company, typically measured by stock price and dividends.

Financial Goal

A specific monetary target to save, invest, or spend money within a definite period, guiding financial planning and decision-making.

Corporation

is a legal entity that is separate and distinct from its owners, providing them with limited liability, and it has the ability to enter into contracts, loan and borrow money, sue and be sued, and pay taxes.

Financial Assets

Economic resources or ownerships that are convertible into cash or will generate cash in the future, such as stocks or bonds.