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:

Identical Twins

Identical twins are siblings born from the same fertilized egg that has split into two, sharing all of their DNA and typically having very similar appearances and genetic traits.

Influenced More By Genetics

The idea that certain traits, behaviors, or conditions are predominantly determined by genetic factors rather than environmental influences.

Below The Average Rate

Refers to any value or level that is less than the statistical average or mean in a given set of data or measurement.

Obesity Rates

The percentage of a population that is classified as obese, based on measures like the body mass index (BMI).