Confirmations Are Considered to Be the Most Efficient Procedure for Obtaining

question 29

Essay

Confirmations are considered to be the most efficient procedure for obtaining sufficient appropriate audit evidence to support the existence and rights assertions of accounts receivable. However, there are still circumstances under which other procedures may be more effective. List four situations in which confirmations are unlikely to be effective.

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Definitions:

Generation Z

The demographic cohort following Millennials, typically defined as those born from the mid-1990s to the early 2010s, noted for their digital savviness and diverse values.

Demand Matches Capacity

A situation in which the demand for a product or service equals the supplier's capacity to produce or provide it, leading to optimal operational efficiency and customer satisfaction.

Service Organizations

Businesses that provide intangible products or services to customers instead of selling physical goods.

Availability

The state of being easily obtainable or accessible, often used in reference to goods, services, or information.