The Confirmation of Customers' Accounts Receivable Rarely Provides Reliable Evidence

question 60

Multiple Choice

The confirmation of customers' accounts receivable rarely provides reliable evidence about the completeness assertion because:

• A)many customers merely sign and return the confirmation without verifying its details.
• B)recipients usually respond only if they disagree with the information on the request.
• C)customers may not be inclined to report understatement errors in their accounts.
• D)auditors typically select many accounts with low recorded balances to be confirmed.

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Definitions:

Socialization

The process by which individuals learn and adopt the norms, values, behaviors, and skills necessary to participate effectively in a society or organization.

PJ Fit

Person-Job Fit; the compatibility between an individual's characteristics and the requirements of a specific job.

PG Fit

Typically refers to Person-Group Fit, which is the compatibility between an individual and a workgroup, including shared values and working styles.

Socialization Process Model

A framework describing how individuals learn social skills, norms, and behaviors to adapt successfully to their environment.