If a Confirmation of an Accounts Receivable Balance Is Not

question 33

Multiple Choice

If a confirmation of an accounts receivable balance is not returned by the customer, the auditor might validate the receivable by _______.

• A)confirming a different receivable with a different customer instead
• B)looking at evidence of subsequent cash receipt in the amount of the billing to the customer
• C)looking at evidence of subsequent cash receipt in the amount of the billing for a different customer
• D)confirming the receivable with senior management

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Definitions:

Maximizing Wealth

The process or strategy aimed at increasing the financial value and assets owned by an individual or corporation.

External Users

Individuals or entities outside of a company who rely on financial statements to make informed decisions about the company, including investors, creditors, and regulatory agencies.

Shareholders

Shareholders are individuals or entities that legally own one or more shares of stock in a public or private corporation, giving them a claim on its assets and earnings.

Regulators

Authorities or agencies responsible for overseeing and enforcing laws within specific industries to ensure fairness, safety, and compliance.