When a Customer Fails to Reply to a Confirmation and the Auditor

question 71

Multiple Choice

When a customer fails to reply to a confirmation and the auditor is unable to obtain other evidence about the existence of the receivable, _______.

• A)the auditor must conclude that these balances are 100% misstatements and project the misstatements on the remaining portion of the population
• B)the auditor must conclude that these balances are 50% misstatements and project the misstatements on the remaining portion of the population
• C)the auditor must conclude that these balances are 100% misstatements and project the misstatements on the remaining portion of the sample
• D)the auditor should notify management of the auditor's intention to withdraw from the engagement

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Definitions:

Dependent Variable

The variable in an experiment that is expected to change or respond as a result of manipulations of the independent variable.

Experimental Treatment

A new or novel intervention or therapy being tested or evaluated for its effectiveness in treating a condition or disease.

Influenced Factor

An element that affects or alters the outcome of a process or situation.

Sexual Arousal

A physiological and psychological state of being awake or reactive to sexual stimuli.