Which of the Following Circumstances Would Indicate That Positive Confirmations

question 82

Multiple Choice

Which of the following circumstances would indicate that positive confirmations should be used on this engagement?

• A)A significant portion of the total accounts receivable balance is represented by a small number of accounts with large balances.
• B)The internal control over accounts receivable is good.
• C)The recipients are mostly businesses rather than individuals.
• D)The auditor is unaware of disputed or inaccurate accounts.