The Confirmation of Customers' Accounts Receivable Rarely Provides Reliable Evidence

question 62

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:

Hypnotized

A state in which a person appears to be in a trance, often induced by another person, where they can be more easily influenced by suggestions.

Psychoanalysis

A therapeutic approach and theory of personality developed by Sigmund Freud, focusing on unconscious processes and unresolved conflicts.

Willing Participant

An individual who agrees to take part in a research study or experiment without any coercion, fully understanding the nature of the research.

Spontaneous Brain Activity

Neural activity within the brain that occurs without external stimuli, often observed in resting-state functional connectivity studies.