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A Client Has 100 Customers Constituting a Total Accounts Receivable

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A client has 100 customers constituting a total accounts receivable balance of $2 million.Twenty of the client's customers currently have balances over $50,000, with the remainder having balances less than this amount.If auditors decide to send confirmations to the twenty customers with balances of at least $50,000, what percentage of the total accounts receivable will the auditor ultimately audit?


Definitions:

Moral Reasoning

The process of determining what is right or wrong in a given situation by applying ethical principles.

Privacy

The state or condition of being free from unauthorized intrusion or disclosure in one's personal life or affairs.

Personal Freedom

The right to act, speak, or think without unwanted external restraint.

Justice Perspective

A moral perspective that focuses on the rights of the individual; individuals independently make moral decisions.

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