When the Positive Form of Accounts Receivable Confirmation Is Used

question 36

Multiple Choice

When the positive form of accounts receivable confirmation is used and no response is received, the auditor should normally:

• A) assume the account is in error.
• B) send a second positive request.
• C) assume the account is correct.
• D) send a negative confirmation.

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Definitions:

Doubled

Increased by 100 percent; made twice as large or numerous.

Quadrupled

Quadrupled in amount or worth.

Trade Deficit

A situation that occurs when a country imports more goods and services than it exports, resulting in a negative balance of trade.

Billions

A numerical value equal to one thousand million (1,000,000,000) in the short scale used by most English-speaking countries.