In a Sample of Confirmations Sent to the Auditee's Customers,one

question 30

Multiple Choice

In a sample of confirmations sent to the auditee's customers,one customer failed to respond,despite the mailing of a second request.In this case,which of the following would NOT be an appropriate response?

• A)When the auditor concludes from the confirmations received that accounts receivable is fairly stated and the customer's balance from the nonresponse could impact on that assessment,expand the sample,performing alternative procedures on the additional balances selected.
• B)When the auditor concludes from the confirmations received that accounts receivable is fairly stated and the customer's balance from the nonresponse is insignificant,it can be ignored.
• C)When the auditor concludes from the confirmations received that accounts receivable is materially misstated and the customer's balance from the nonresponse is insignificant,it can be ignored.
• D)Increase the initial assessment of incorrect acceptance and revise the sample size accordingly.

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Definitions:

Planned Pay

A strategic approach to compensation where organizations plan and structure employee pay scales based on roles, performance, and market conditions.

Independently Negotiated

Terms or agreements that have been discussed and agreed upon between parties without external influence or coercion.

Training Rate

The pace or speed at which new employees are trained and prepared to perform effectively in their roles within an organization.

FLSA

The Fair Labor Standards Act, which sets standards for wages, overtime pay, and employment of minors in the United States.